DislikedBig Red, I am not sure I undrestand what you asking about. But once there is no answer until now, I will explain what might be your question. Say we go long on both pairs eurusd and usdchf. So while buying eur and selling usd in the 1st pair we buy usd and sell chf with the second pair - thus eliminating dollar from the equation eur/chf altogether. Then look at the value of eur/usd if we want to eliminate the dollar we should make that a monetary value of the dollar would be equal in both trades. 'Cause 1 eur is worth appr 1.47 dollars, the second trade will be not 1:1 but 1:47 appr.
Was it this you were asking about? It was explained a long time ago in the thread.
Cheers,Ignored
First, thanks for replying!
I understand that for every 1 lot of EURUSD, there is (at this moment) 1.47 lots of USDCHF required for the hedge.
I am having trouble understanding what role EURCHF plays. I am not clear on how the divergence is measured and or from what it is measured.
Regards,
BR