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Is risk diversification even possible in the forex market? - page 11

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Vitalii Ananev:
Google "Bretton Woods System" or "Bretton Woods Agreement" and you will see.
And I also wonder where exactly in the CADGBP pair the US dollar"sits".
Someone in the "FOREX - Trends, Forecasts & Consequences" roomhas not closed the door tightly again........
Дмитрий:

Please tell me exactly how the US unemployment news affects the AUDNZD pair.

Dimitri:
And I am also wondering where exactly in the CADGBP pair the US dollar "sits"

Learn the math.

AUDUSD and NZDUSD

USDCAD and GBPUSD.

Everything is ultimately converted to dollars.

Vitalii Ananev:

Learn the math.

AUDUSD and NZDUSD

USDCAD and GBPUSD.

All converted into dollars in the end account.

Why? Where in the AUDNZD cross is the US dollar? If the Aussie and the New Zealander are equally correlated to the dollar - where is the dollar?
Mike Kharkov:

Save your brain and try to forget all the bullshit that the "great gurus" here have managed to advise you. For some reason, it is often the ignoramuses and the ignorant who lecture others on this forum and in life in general. In order not to give such "gurus" a reason to convert the topic to the level of personal insults with puffed up cheeks and personal attacks, I will not name the authors of these absurd rubbish. I will simply address the substance of some of the "great revelations":
- "zeroing in on currencies", creating a currency-neutral portfolio - an unrealizable delusion that has been quoted repeatedly and none of the peddlers bothered to substantiate the tale with calculations;
- diversification of risks within one trading account - fiction;
- using a large number of simultaneously traded instruments does not help diversification.
And now I will repeat the question specifically to you - how can you make a profit from a locked position (which is what diversification essentially aims to do)? If you do not have a clear answer, there is no point in looking for ways to diversify.
Дмитрий:
Why? Where is the USD in the AUDNZD cross? If the Aussie and the NZD are equally correlated to the dollar - where is the dollar?

I wonder in what currency you then calculate e.g. the pip value of this pair. Or if you open a trade in this currency pair, what do you calculate profit/loss in?

You are contradicting yourself when you say "the Aussie and the NZ is equally correlated to the dollar" and then you ask "- where is the dollar? If the dollar is not there, then how does this pair correlate to it, if it is not in the pair's value calculation?

Vitalii Ananev:
I wonder in what currency you then calculate e.g. the point value of this pair. Or if you open a trade on this pair, what do you calculate the profit/loss in?
)))) What do you calculate the profit/loss in? In the currency of the deposit. Why?
Vitalii Ananev:
I wonder in what currency you then calculate e.g. the pip value of this pair. Or if you open a trade on this pair, what do you calculate profit/loss in?
In the currency of the deposit.)
Комбинатор:
In the currency of the deposit )
You owe me a Coke.
Дмитрий:
)))) what do I calculate my profit/loss in? In the currency of deposit. Why?

And that when converting the value into the currency of the deposit, the value in dollars is counted first.

For example: Take GBP/CHF, exchange rate 1.4400.

Pip value = position volume * pip value * current quote of base currency against USD / current exchange rate of the currency pair (cross-rate) For GBP/CHF: 10 000 * 0.0001 * 1.5800 (GBP/USD rate) / 1.4400 = 1.1$

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