Opposite Trading Pairs
- Thread starter oddiduro
- Start date
What's the point of trading a currency pair that moves in the opposite direction of EUR/USD, such as USD/CHF. Why not just trade the EUR/USD, long or short.
Maybe a EUR/CHF trade, but not USD/CHF.
Maybe a EUR/CHF trade, but not USD/CHF.
There is an advisory on the web that suggest to trade correlated pairs like EUR/US and US/CH for a no profit/ no lose (or close) but in order to take advantage of the difference of paid interest.
There website is welldone but not detailed (only a videoand FAQ) but they claim to generate money without spending more than 15 minutes a weekand without watching direction of currencies.
Could it be possible that due to huge leverage and some forex brokers asking for reduced margins in such kind of opposite trades that the small difference of interest rate between 2 currencies (up to 4% per year) could generate a gain despite the risk of losing if not being close enough to 100% correlation ???
There website is welldone but not detailed (only a videoand FAQ) but they claim to generate money without spending more than 15 minutes a weekand without watching direction of currencies.
Could it be possible that due to huge leverage and some forex brokers asking for reduced margins in such kind of opposite trades that the small difference of interest rate between 2 currencies (up to 4% per year) could generate a gain despite the risk of losing if not being close enough to 100% correlation ???
If you trying to take out the flow...there are valid techniques to play these twin pair...
For example if you do not care about the direction and rely upon retracements you can simply place TP's on each side....
Then you can turn into a trade replacer, rather than a trender...
Just so your UPL remains managable while your cashin' in...(exposure can control this through the evaluation of the 2000 day range to space your increments with)
One of you will read this post and get it...that is enough for me...Good trading to you...
Michael B.
For example if you do not care about the direction and rely upon retracements you can simply place TP's on each side....
Then you can turn into a trade replacer, rather than a trender...
Just so your UPL remains managable while your cashin' in...(exposure can control this through the evaluation of the 2000 day range to space your increments with)
One of you will read this post and get it...that is enough for me...Good trading to you...
Michael B.
Quote from oddiduro:
This question must have been asked before, someone point the way
What trading pairs trade opposite each other??
For example if EURUSD is trending down, what currency pair is likely to be trending up?
Best Regards
Oddi
USD/JPY
USD/CHF
Peter
Hello to all,
Iâm trying to find a calculator that will help me hedge correlated currency pairs for profit on interest ie: GBP/USD â USD/CHF and GBP/JPY â CHF/JPY. The calculator would have to be able to balance the unit size of each currency in the hedge. Example right now GBP/USD â USD/CHF is at about three to four ratio P/L is 1 for GBP/USD and 0.8075 for USD/CHF. It would also have to have an input so that the account size is taken into consideration when buying the units size. The calculator would also have to be able to account for currency pair drawdown in the hedge which could possibly cause a margin call. Example if our currency hedge pairs swings 500 pips and the hedging currency only swings 50 pips this could possibly trigger a margin call if the account size is not large enough. Like isufreak24 Iâm looking to do all this within one account. Does anybody have any suggestions for sites.
Iâm trying to find a calculator that will help me hedge correlated currency pairs for profit on interest ie: GBP/USD â USD/CHF and GBP/JPY â CHF/JPY. The calculator would have to be able to balance the unit size of each currency in the hedge. Example right now GBP/USD â USD/CHF is at about three to four ratio P/L is 1 for GBP/USD and 0.8075 for USD/CHF. It would also have to have an input so that the account size is taken into consideration when buying the units size. The calculator would also have to be able to account for currency pair drawdown in the hedge which could possibly cause a margin call. Example if our currency hedge pairs swings 500 pips and the hedging currency only swings 50 pips this could possibly trigger a margin call if the account size is not large enough. Like isufreak24 Iâm looking to do all this within one account. Does anybody have any suggestions for sites.
http://www.mataf.net/en/analysis-correlation.htm
There are plenty of positively and negatively correlated pairs. In the linked tables, -100 is perfectly negatively correlated. +100 is perfectly positively correlated. 0 is completely uncorrelated.
There are plenty of positively and negatively correlated pairs. In the linked tables, -100 is perfectly negatively correlated. +100 is perfectly positively correlated. 0 is completely uncorrelated.