Buying Cross Pairs & multiple pairs

Beginner Questions
1

Hopefully some forum members can chime in on my question. At approx. the same time (2 minutes apart) I Bought/Sold the following pairs:

EUR/GBP Sold
GBP/USD Bought

I’ve noticed that when one pair increases, usually the other decreases. So a couple of questions:

  1. Did I hedge the two pairs?
  2. Am I essentially working with the EUR/USD?
2

It’s all explained here:-

Currency Crosses - College: Currency Crosses - The Bastard Step Children of Forex - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training - BabyPips.com

:slight_smile:

3

that means you bought gbp against the euro and bought gbp against the usd. I wouldn�t really say you are hedging anything unless you are short gbp elsewhere. It�s strange that you have witnessed an inverse relationship between the two i would say it would only be short term

4

The inverse relationship seen between the pairs in the price moves is an indication of general action in the GBP. Given that the two positions end up essentially mean a double long position in GBP, that could be a dangerous set-up if the GBP goes south.