|
PureBytes Links
Trading Reference Links
|
Not an expert on this but it Logically seems equivalent except if the
resultant movement does not produce an equal or greater dollar expectation
as the EURAUD for the same move.
-----Original Message-----
From: C [mailto:camacazi@xxxxxxxxxxxx]
Sent: Thursday, November 25, 2004 1:44 AM
To: omega-list@xxxxxxxxxx
Subject: fx quandries
Howdy
I have a system that works well with a FX spot of the EUR vs AUD [or EURAUD
meaning euro /aust dollar]
anyways the spread of the bid and ask of the EURAUD is like 14 pips [ie bid
is 1.6729 and the ask is 1.6743] so basically the commisiion is like 14 pips
or in other words 140$ commission :O( which is bad.....
But.....
looking at the bid/ask of the EUR vs USD its spread is 3 pips [ie bid is
1.3181 and the ask is 1.3184] which is good 30$
....and....
looking at the bid/ask of the AUD vs USD its spread is 3 pips [ie bid is
.7875 and the ask is .7878] which is also good 30$
so isnt buying 100k of of Eur/AUD the same as Buying 100k of the EUR/USD and
Selling 100k of the AUD/USD ? [which costs in spreads 2*30$ which is better
than the spread of the EUR/AUD of 1*140$?]
or am i missing something?
Cheers
Cameron
:O/ [confused yet again]
---
|