Hedging or spreads - Page 2
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Thread: Hedging or spreads

  1. #11
    Quote Originally Posted by king22 View Post
    hedge very good but the exit from it very difficult because it give us two orders and one is high profit and the other high loss but we can exit from it if we know the strong point that the market will revers from it but actually this strategy not good and need the professional to use it but the newbie or the beginner will lose much money with it
    Well, there are other way of hedging actually and personally i've found that there are some pro traders are using it. Such thing is like holding position when buying a pair and getting money from the interest rate. As what i've searched, it's buying the aud/usd pair and buying the usd/jpy pair together because the three of them is related actually. As when the jpy get weaker, that means the China will get a hard time in selling and that will made the AUD drop as well. So this is a real stalemate where the price won't go anywhere and you can earn some money from the swap points. just made sure you have a big balance to do this strategy first.

  2. #12
    I think absolutely right that we use the hedging to loss and try to save our capital in the forex trading because the forex market is business where we earn the good money on the good opportunity and we need to avail all these opportunity to earn the good money in the trading and i think the forex trading is risky and uncertain so that' s why we have the strong expertise and experience of the trading to make the money in the forex trading.

  3. #13
    Quote Originally Posted by RoboForex Trader View Post
    Please note, we have two positions by the dollar, one is for sale, the second is for buying. It means we’ve locked the both position by USD. That is a hedging, it’s equal to zero due to the lock.
    I totally agree with you. Some traders just only know that hedging means buying and selling the SAME pair at once. However, correlation between GPBUSD and EURUSD is often as strong as USDCHF and EURUSD. However, it doesn't seems intelligent to do that, most traders often hedge as they are not sure about market in future.

  4. #14
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    Thank moderator as we know that hedging is a very good strategy to bring our trade in normal position to save our account from loss I love to hedging because its a very good strategy but always required good money of money in mini or standard account for cent account its very good i think

  5. #15
    I do not like hedging as part of my risk management, for me it is just wasting more money in spread. I would better apply and use a stop loss to limit losses. Not only hedge trades eat more spread but consume more margin so we are left with little open new trades.

  6. #16
    Trader Russel2012's Avatar
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    yes that's a one another strategy as like another valuable strategy... but all time that strategy is not suitable in market movement.. Cause sometimes we need to change our strategies also.. Any way if any trader can follow that strategy in the perfect time then of course he will be successful trader In saa Allah...

  7. #17
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    Quote Originally Posted by guru View Post
    I do not like hedging as part of my risk management, for me it is just wasting more money in spread. I would better apply and use a stop loss to limit losses. Not only hedge trades eat more spread but consume more margin so we are left with little open new trades.
    Hedging is also a good tool available to control the risk. Hedging and stop loss have their own advantages. Hedging allows us to avoid further losses by fixing our current losses while stop loss allows us to limit our losses. Hedging can help us to recover our losses or reverse our trade.

  8. #18
    Quote Originally Posted by forexfighter007 View Post
    Hedging is also a good tool available to control the risk. Hedging and stop loss have their own advantages. Hedging allows us to avoid further losses by fixing our current losses while stop loss allows us to limit our losses. Hedging can help us to recover our losses or reverse our trade.
    Hedging can be useful only when market is uncertain and highly volatile other wise i do not think there is much use of hedging ever. You do hedge to prevent losses further, if you know your losses are bout to grow why do not u close the trade itself and avoid wasting spread further in another hedge trade. Also by way of hedging you have more trades to handle and so you invite extra stress and complications to your trading.

  9. #19
    One way to avoid our capital in forex trading is one of them can be done by way of hedging, but to implement this strategy is also in need of a good experience in forex trading, because one of the release will also hedging transactions could harm us.

  10. #20
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    I think the Hedging system is not good.The hedging system can blow your full account anytime.If you arr not expert in the forex trading so do not take any risk any time becasue the forex trading is so risky market so we have to understand the market.

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