Forex Hedging

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erad

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Dose any one use hedging with forex trading ie. Parent trade supported by a child to recover some losses I have tried some trades without to much success. If any one has some ideas it would be greatly appreciated

Dan
 
You can't recoop losses in a position by opening an opposing position because as long as you have both trades on your next gain/loss will be nil. Do the math. If you're both long and short, what ever gain the long positions makes will be a loss for the short position, and vice versa.
 
Rhody Trader said:
You can't recoop losses in a position by opening an opposing position because as long as you have both trades on your next gain/loss will be nil. Do the math. If you're both long and short, what ever gain the long positions makes will be a loss for the short position, and vice versa.
Click to expand...

Actually you're too optimistic. You'll be even worse off 'hedging' by running opposing trades due to the funding spread. You won't receive as much as as you have to pay, so you end up paying your broker for the privilege of having no exposure. Absolute madness.
 
erad said:
Dose any one use hedging with forex trading ie. Parent trade supported by a child to recover some losses I have tried some trades without to much success. If any one has some ideas it would be greatly appreciated

Dan
Click to expand...

Morgan Stanley know all about hedging! This time next years rodders! :clap:

Personally i find hiding under the bed with my teddy far more effective! :D
 
Last edited:
Erad, the sooner you stop thinking about this the better, as all it is is a big, massive brain fart of gigantic proportions on behalf of the people who were kind enough to propose this nonsense to you.

brain_fart_hg_clr.gif


Yes Sir.

:D
 
ns1000 said:
Actually you're too optimistic. You'll be even worse off 'hedging' by running opposing trades due to the funding spread. You won't receive as much as as you have to pay, so you end up paying your broker for the privilege of having no exposure. Absolute madness.
Click to expand...

You're absolutely right. I just didn't want to make things more complicated than need be.
 
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