calculating synthetics - please help

Can someone show me the formula for calculating synthetics?

This is strictly for educational purposes, which will hopefully help with hedging strategy.

Let's say that instead of going long 10000 units of GBP/JPY

I could go long USD/JPY and GBP/USD

How many units should I go long USD/JPY and GBP/USD
to equal 10000 units of GBP/JPY?


Thanks!!!

Not sure if I can post a direct link because babypips is full of ads, but do this:

Try a search on Google for synthetic forex pairs , 2nd result link should lead you to an article on babypips about the subject.

tenantro,

thanks. I searched the forum directly, and nothing came up useful.

you mean the forum on babypips? the article i mentioned is not located on the forum.

hmmm ... i hope i don't get an infraction for this, but here is the direct link for the article:

http://www.babypips.com/school/synthetic_pairs_1.html

thanks. It didn't come up in the search. I appreciate it.