I Have a very hard to ask question involving inverse price. If you know the movement of a regular quoted pair for any particular time frame (we know movement as pips) and when you re-quote the price into base currency (1/Price = price re-quoted in base currency) and determine the difference in the inverse price movement (also known as pips)… Should the movement in base currency be equal to the movement in the regular quoted pair? Example: EUR/USD rise 4 pips in value, so USD/EUR drops 4 pips in value. Logically it makes sense that they are equal but opposite right?.. One currency gains value against the currency it’s quoted against, and the other currency loses equal but opposite value against the other currency. I will post some actual examples later tonight, I’m currently at work so I do not have the ability to do so… But, my math is correct, so how come I do not get the same movements? Inverse prices movement ends up being less than regular price movement. It doesn’t make any sense to me… Anyone know why this is or any idea what it could mean?
Thanks