Is betting a currency on both sides at the same time generally a bad idea? For example, isn’t betting USDJPY long and EURUSD long betting the USD against itself?
Many thanks.
Your long and short exposure to USD at the same time in two positions effectively means no profit and no loss from USD price movement. They cancel each other out. Therefore you are left with a short position on JPY and a long position on EUR, which of course is achieved more practically and with only half the cost overheads by simply buying EUR/JPY.