Is risk diversification even possible in the forex market? - page 12
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You owe me a Coke.
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 the 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
) That is if you want to calculate the pip value in dollars. And if you want to calculate a price in Euro - you use the current quote of the base currency against Euro.
It's clear to me. You're a real troll. What's the euro quoted against? To the dollar again.
Mike Kharkov:
Save your brain and try to forget all this crap that the "great gurus" here have managed to advise you. Why is it that losers and ignoramuses most often try to teach others on this forum, as well as 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, then looking for ways to diversify does not make sense.
But that's certainly not what I was aiming for.
As I understand it, diversification by instrument is loading the depot not with those instruments that lock each other out, but with those that just don't interfere with each other's movement...
An example on nys:
There are stocks that move with the Dow Jones Index there are some that do not move with it and do not correlate in any way at all.
(Some stocks from the Healthcare or Pharmaceuticals sectors...)
Here by taking 1 stock each from the first and second case I would get in my understanding diversification and at the same time these 2 stocks would not lock each other...
(the purpose of this thread for me is to find out if this can be achieved in forex or not...)
It's clear to me. You're a real troll. What is the euro quoted against? To the dollar again.
I thought there was a thread about correlation.
There used to be a thread about correlation.
Well, it was stupid to talk nonsense about the dollar and the Bretton Woods system and think it would do without trolling
What nonsense?
The man asked about diversification in forex. He was told I believe there can be no diversification in forex as all currencies are quoted against the dollar.
He asked why to the dollar. Quote " I've heard about the quid being everywhere. (but don't fully understand why?) ....." He was advised to read about it on the internet, in particular this agreement.
Read my previous posts and the top starter's posts carefully.
There's no way out of the locked one.
But that's definitely not what I was aiming for.
My understanding of diversification by instrument is to load the depo not with those instruments that lock each other out, but with those that just don't interfere with each other's movement...
(the purpose of this thread for me is to find out if this can be achieved in forex or not...)