A recent webinar mentioned that it is possible to combine Nadex pairs into pairs beyond the listed majors. I have an interest in the AUDJPY pair as many consider it the risk on/off pair and it can be a leading indicator for indices or reaction to data releases. I presume this could be accomplished by being long AUDUSD and short USD JPY (or the reverse if bearish) to effectively eliminate the USD in the middle? Can you comment on this approach to constructing pairs? Can you also provide your thoughts on the AUDJPY pair as well as other combinations you like to trade?
Synthetic FX Pairs on Nadex
darrell
#2
I usually keep it simple and stick to the majors. Though I have traded nearly all crosses including some of the really weird ones.
EUR/GBP is another good one
To construct a inverse pair - you would buy a spread and sell a spread
ie to buy the aud/jpy - you would buy aud/usd and buy usd/jpy
this makes you long aud short usd
long usd
short jpy
so long aud/jpy
if you bought both - you wold be long aud, short usd, short usd, long jpy Basically double short usd so no real advantage here
ideally both of them have low risk and are close to floor or if short that both are close to the ceiling
test it out on demo and post some results and what you notice