Serving the Quantitative Finance Community

 
User avatar
enginkuru
Topic Author
Posts: 2
Joined: July 5th, 2004, 7:09 am

forex netting service

December 2nd, 2005, 12:45 pm

What is forex netting service and its dis/advantages?Example: Positions Long 100,000 EUR/USD for $118,370 Short 100,000 EUR/GBP for 72,310 GBP Short 72,310 GBP/USD for $118,501 To calculate netting position for each currency we need to sum up position on each currency from all pairs. In our case we have a long position in EUR from the EUR/USD pair and a short position in EUR from the second pair with the same amount 100,000 , which result in zero on EUR. The same result (zero) we receive in GBP, and in USD we receive $131. The resulting balance is $131 without open positionsIs this correct and why dont all financial services do that if it is so simple?