Quote:
|
Originally Posted by mmont
FXTRADER777
SO if Cross rate moves as moves its components then longing/shorting the cross is almost longing/shorting its components
That's my point.
USD is NOT a componant of EURJPY.
If the EUR goes up against the yen it does not follow that the EUR will also rise against the BUCK.
Just look at the last quote at 2:51PM EDST.
You'd be down 32 pips on the USD crosses, while the E/J is up 7 pips.
"Learned in International Finances" or not.
|
Involve a little Mathematics and you will understand the concept.
As for International Finance if you do not believe me Google it. Write Triangular Arbitrage in google search and you will get the answer.
when you are long in EURUSD and long in USDJPY you are not depended on USD because two USD equalize each other (or how to say, do not know enough English). This trade becomes dependant of EUR and JPY thus EURJPY pair.
Why are this forum members so agresive. IF you do not know anything it is not a shame, I do not know a lot of thing but I confess and listen to the teacher.
The concept is clear as boiled eggs( Russian byword). Involve Mathematics and you will understand what I am saying
thanks