OANDA - are they joking!!?

[Rhody Trader]

It makes absolutely no sense at all, and yet brokers actually offer this facility, and sell it as an advantage to people without the intellectual capabilities to see the falacy

I have seen a prominent forex broker who actually recommended "hedge" strategies. Talk about swarmy behavior. Don't know if they still do that as for obvious reasons I don't spend much time looking at what they're up to.

 

[zupcon]

Just to give another point of view....

Actually I find this an advantage with IG because it allows me to run 2 separate systems (one longer term - one short term) without them interfereing with each other.

However these are completely unrelated trading methodologies. Going short to hedge out an existing long doesn't make sense.

100% in agreement, I do exactly the same thing based on set ups in different timeframes so am often long and short the same pair, which as the OP states isnt possible at Oanda without a sub account

 

[everyonerich]

Eh, have i missed something.

Have two accounts, one for long term, one for scalps

Regardless of having two different strategies running if you sell the same amount that you hold you've closed that position. If you buy again in 10 seconds then surely thats a new postion.

and does it really matter how they do it.

simple fact is your long 1, you sold 1 where you wanted to and bought them back lower didn't you?

When you effectively hedged as you describe it you ha no position and your account showed that.

can open another sub-account if you sponsor some extra money?

 

[foredog]

can open another sub-account if you sponsor some extra money?

If it's for hedging do you want it in you privet account??:clap:

 

[everyonerich]

..... i cant just use Oanda. too bad..

 

[gooseman]

looking to do it as an arb gecko? or like a rel value trade?

 

[MrGecko]

Thanks GJ.

Not looking to put a trade on myself, wouldn't really know where to start TBH. I'd want to have all sorts of prices and rates avaialable to fumble with, only to take a guess.

But yes, putting it on as a relative value trade is what I had in mind - just like you might take a view on the EUR curve and put it on through spreads to make the position a little friendlier to speculate with.

 

[gooseman]

i'm genuinely interested mate-assuming the forward curves are priced off the IR futures strips then I just would think the liquidity spreads would be larger/more opaque in FX. I a chance to "rip someones face off"

 

[MrGecko]

i'm genuinely interested mate-assuming the forward curves are priced off the IR futures strips then I just would think the liquidity spreads would be larger/more opaque in FX. I a chance to "rip someones face off"

actually I was just thinking a similar thing - couldn't you deduce what the Exchange rate curve should be like due to the differences in the IR strips? If you consider an exchange rate as a ratio of two term structures of interest rates, there should be some equivalence there, right?

Maybe jig it about to account for some Macro stats like defecits etc..., but you've got a framework at least?

 

[gooseman]

don't see why not. you should be right, the pricing differentials from whatever source you get a 2-way market from will obviously have modelling differene but i thik a system like that is just begging to have you whacked on a spread somewhere. . i'd imagine the 2-way pricing is only avaoilable to institutional investors.

 

[gooseman]

yeah-always going to be the issue with OTC stuff-you are always exposed to the potential of a skewed price given the dealer/desks position. Less so on exchange as there is a transparency......if "normality" returns to the markets then i guess there would be the potential for a RV trade potentially exposing pricing inefficiencies from IR's to forward FX. Might be good if banks don't update models intraday and you get a sharp move on the IR's.

 

[MrGecko]

I can accept that there might not be any profit in it, because of dealer spreads etc... but surely there is a boundary within which the difference can be, beyond which there exists an arb opportunity?

 

[gooseman]

i'd imagine there is, absolutely.

 

[GloballyRelaxed]

This is weird, because I am in exactly the same type of discussion with a FX Day Trading Teacher on linkedin, as much as I try to point out you are not hedging you are closing and you are paying interest away on the two positions open the more I get resistance....its like banging your head against a wall.


Anyways ....the NFA are closing that loophole very soon so the brokers in the US will stop pushing that possibility, thats what has this so called 'FX Course Provider' so heated up....

 

[GloballyRelaxed]

You would think so eh?.....but the level of knowledge this one has it is just mindblowing screwed.

Basically the remit is....and they teach this as well, is never realize a loss, always park it on your unrealized p/l and it will in time always come back into a profit.....


Ive given up now though theres only so much mocking of the afflicted you can go through before it gets pointless, I will leave you guys to guess the nationality, should not be that difficult

 

[Claudia123]

seems you guys are trying to over complicate things. hedging with currencies that correlate is ok but pretty pointless. just buy low and sell high or via versa. the average one of us trading from home with limited capital aint clever enough to start hedging and playing around. and if you really want to hedge then use 2 brokers!! then no one knows wot u doing - probably includes u lol.

 

[gooseman]

you can think you are hedging correctly with a closely correlated cross, until the correlation breaks down and you get carted.

 

[gooseman]

i''d love to have an hour chat with him.

 

[FXSCALPER2]

Just ask John Meriweather about correlations

That one was supposed to be very clever, eh? In addition to having those Nobel laurets along with him. Astounding really. Retards. Saying that to clever people feels amusing.

 

[gooseman]

yeah but then again they're "retards" worth more than you or i wille ver be (saying that i don't know you from adam but i'm taking a leaf from meriweather and using probability)