Hi,
there is something I don’t understand about neutral trading.
This example always comes up:
After a spread of x PIPs on the difference of EUR/USD and USD/CHF you buy 1 Lot of both pair. Or 1 Lot of EUR/USD and 1.5 Lots of USD/CHF (for real neutral trading value).
My fees on this are….
EUR/USD 2 PIPs
USD/CHF 3 PIPs
So a total of 5 PIPs on fees for an entry of x PIPs difference.
Isn’t that exactly the same as would I Range trade a x Range of EUR/CHF with only a fee of 3 PIPs?
Why do people go threw the USD and call it a neutral trading?
That is what I don’t understand and would be happy when someone could explain the positive effect of neutral trading or what this is all about….
It is obvious that I am missing a little part so what is it?
there is something I don’t understand about neutral trading.
This example always comes up:
After a spread of x PIPs on the difference of EUR/USD and USD/CHF you buy 1 Lot of both pair. Or 1 Lot of EUR/USD and 1.5 Lots of USD/CHF (for real neutral trading value).
My fees on this are….
EUR/USD 2 PIPs
USD/CHF 3 PIPs
So a total of 5 PIPs on fees for an entry of x PIPs difference.
Isn’t that exactly the same as would I Range trade a x Range of EUR/CHF with only a fee of 3 PIPs?
Why do people go threw the USD and call it a neutral trading?
That is what I don’t understand and would be happy when someone could explain the positive effect of neutral trading or what this is all about….
It is obvious that I am missing a little part so what is it?