Synthetic Eur/JPY
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Thread: Synthetic Eur/JPY

  1. #1
    Super Moderator Gamer's Avatar
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    Synthetic Eur/JPY

    lately i was trying to trade a cross pair yen one euro versus the yen , so whats i was discovering i was putting my eyes on eur/usd and u/j so i was looking these together and trying to know what these are doing well what is if eur/usd and usd/jpy has same direction eur/jpy will go wild i mean more volatile and if go opposite direction then eur/jpy start getting choppy so what at the end at the end , i took the price of eur/usd current and multiply by the u/j current same prices whats EJ has its showing me
    So what can be bias if for you for the trading
    i hope its a good information for us , at least we are a cross trader

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  2. #2
    Super Moderator RoboForex Trader's Avatar
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    Very important for synthetic trade is to calculate the course correctly. I've seen many times the trader beginners made mistakes in synthetic courses calculations. You should always remember the price consists of two parameters: BID and ASK. We buy at the price of ASK and sell at the price of BID. As a prompt for beginners: BID price is always lower than ASK. For example, for to sell synthetic of EURJPY we need to sell EURUSD and USDJPY.
    To make this situation absolutely clear I made a screenshot of the MARKET WATCH ROBOFOREX.



    BID of EURUSD is to be multiplied by BID of USDJPY 1,2961*94,98=123,103578 let's take it rounded to 123,10 , but the market BID price is 123,11
    This example shows that market price is better then synthetic in this case.

    P.S. It is really important for calculation to take correct BID and ASK.

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  3. #3
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    Please when this calculations is been done of what benefit can it be to a trader who wants yo exploit such an information.Please I need a reply

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    Quote Originally Posted by Gamer View Post
    lately i was trying to trade a cross pair yen one euro versus the yen , so whats i was discovering i was putting my eyes on eur/usd and u/j so i was looking these together and trying to know what these are doing well what is if eur/usd and usd/jpy has same direction eur/jpy will go wild i mean more volatile and if go opposite direction then eur/jpy start getting choppy so what at the end at the end , i took the price of eur/usd current and multiply by the u/j current same prices whats EJ has its showing me
    So what can be bias if for you for the trading
    i hope its a good information for us , at least we are a cross trader
    This is very good and authentic tips for the newbies like me. I was quite unknown about the issue earlier before reading this thread. I find it interesting and try to maintain it in my trading. I have no such moral courage to put my comments on it rather that accepting it well and taking lesson from this valuable tips.

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  5. #5
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    Its very strong and flexible bond between the two pairs that is eur and jpy and that makes it more possible because of the economic strength of Great Britain Pound with the more volatile Japanese Yen. After the market comes the traders ability to calculate the ask and bid prices of the both consecutive pairs and then set up a method for using the result to execute a trade with better price and entry point.

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  6. #6
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    Yeah the flexibility between these two pairs is like a synthetic bond between chemicals as it is because both are totally different types of currency and derived from two sides of the globe and that makes them so uncommonly common that he traders are very willing to invest in this pair most of the time and get benefited much than other pairs.

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  7. #7
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    all pairs of jpy are good and volatile for trading and if jpy is strong it will move in his direction with all other currencies but if it is weak it will be moved according to the direction of the other currencies, when it is strong, you will find that all jpy related pairs move in the same direction, but if it is weak you will find each pair move in certain direction differ from each other

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