Real trading problem

Hi

If you have a long usdjpy and you want to hedge it with short usdchf and short chfjpy, how do you calculate the correct values for those shorts?

Any help will be appreciated.

[Bought 100 USDJPY]


First sell 100 USDCHF to cancel the USD's.

Then find how many CHF youve bought, multiply 100 by the USDCHF rate.

Sell that many CHFJPY.

Thanks

I really don't mean this to sound insulting at all, but I'm just curious since I'm not aware of your trading style -- is there a reason you need to keep the USD/JPY position open at all?

Because if you hedge it this way, assuming you calculate the exact positions in order to perfectly flatten your exposure to the original trade, all you're really doing is giving your broker a 100% risk-free carry trade. (Because brokers add to negative and lessen positive on roll-overs)

Again, I really don't mean this to sound condescending. I just wanted to point this out because if you're trading a large size here, you'd be losing quite a bit to your broker with no net benefit during the time you're "hedged" this way.

I guess I'd understand if you're using an EA or something similar that absolutely must leave the original ticket open but other than that, there's really no real monetary benefit (arguably a psychological one maybe).