Pair trading and multicurrency arbitrage. The showdown. - page 303

 
mvf358 #:
I’ll add my two cents: EURAUD 0.1 sell, GBPNZD 0.8 buy. Based on the current position, profit is $50 and loss is -$150 – not the best time to jump in on a crash. EURAUD 0.13, GBPNZD 0.1 – these show more stable performance. That’s according to my maths; I’m not claiming to be an expert.

The lot sizes have been chosen so that this is essentially trading the pound against the Oceania currencies. That’s completely wrong for a currency pair.