2025-08-14 10:37
Industry Euro Cross Hedging: Triangular Arbitrage Practice
Euro Cross Hedging: Triangular Arbitrage Practice
Logic: When EUR/GBP and EUR/CHF diverge, hedge and arbitrage through GBP/CHF. Formula: When |(EUR/GBP*GBP/CHF)-EUR/CHF| > 0.3%, buy the undervalued currency pair and sell the overvalued currency pair. Example: On February 15, 2024, the spread widened to 0.38%. A long position in EUR/CHF (0.9510) and a short position in EUR/GBP (0.8570) was taken. After 48 hours, the spread narrowed to 0.05%, resulting in a net profit of 1.2%. Key Point: Use an ECN account to minimize spread losses.#SharingTradingMistakesAndGrowth#BrokerEvaluation
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Euro Cross Hedging: Triangular Arbitrage Practice
Thailand | 2025-08-14 10:37 Euro Cross Hedging: Triangular Arbitrage Practice
Logic: When EUR/GBP and EUR/CHF diverge, hedge and arbitrage through GBP/CHF. Formula: When |(EUR/GBP*GBP/CHF)-EUR/CHF| > 0.3%, buy the undervalued currency pair and sell the overvalued currency pair. Example: On February 15, 2024, the spread widened to 0.38%. A long position in EUR/CHF (0.9510) and a short position in EUR/GBP (0.8570) was taken. After 48 hours, the spread narrowed to 0.05%, resulting in a net profit of 1.2%. Key Point: Use an ECN account to minimize spread losses.#SharingTradingMistakesAndGrowth#BrokerEvaluation
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