OANDA - are they joking!!?

[Claudia123]

I'm actually agreeing with you guys - and its 'no way pedro' as mr trotter would say. Never hedge just follow the trend.

 

[Skill Leverage]

I can think of one circumstance when this might make sense, when identical contracts are listed on different exchanges... it is cheaper for you to trade on exchange A but the market is more liquid on exchange B... you might have to 'hedge' your position on A by going into B to close it.

But yeah, I concur with the 'retard' assessment

I can think of another situation when this makes sense - when you're the broker.

 

[everyonerich]

if youre in hedge fund, they employs many trader. the objective is spread out the risk, and so when 1 of the trader are long, theres high possibility that another trader could be short exactly the same pair.

so suddenly oanda closes the position in the shared trading account for no reason, its really messes things up.

 

[Skill Leverage]

Ignoring the ridiculous proposition of 2 traders in a hedge fund having their trades cancel each other out - do you not understand, you are not 'spreading out' your risk by having two conflicting positions on one currency, you are just paying the broker's spreads and ending up with a flat position. Even if your long position outweighed your short position, you still have exactly the same risk as one long position of the difference between the two; the only difference is you have paid a lot more in spreads to get there. This is not 'hedging', it is idiotic, and the only person who wins is the broker.

P.S Why have you robbed 2 other people's signatures for your own...

 

[everyonerich]

Ignoring the ridiculous proposition of 2 traders in a hedge fund having their trades cancel each other out - do you not understand, you are not 'spreading out' your risk by having two conflicting positions on one currency, you are just paying the broker's spreads and ending up with a flat position. Even if your long position outweighed your short position, you still have exactly the same 'risk' as one long position of the difference between the two, the only difference is you have paid a lot more in spreads to get there. This is not 'hedging', it is idiotic, and the only person who wins is the broker.

P.S Why have you robbed 2 other people's signatures for your own...

of course i know going long and short at the same time is just paying spread. but its more than 1 trader on that account, each of them have their own strategy and different stoploss.

perhaps i didnt explain properly in the first post.

 

[Skill Leverage]

OK, but if you had two different people executing their own trades, they should have two separate sub accounts, unless I'm missing something.

 

[everyonerich]

OK, but if you had two different people executing their own trades, they should have two separate sub accounts, unless I'm missing something.

sub-account require additional fund. things is much simpler if you had just 1 account, then lots of trader can access it.

its still the same thing as all the trader reliable, can be trusted & have discipline on money management.

 

[Skill Leverage]

But it's not the same thing, for the exact reason you made this thread.. I've never worked in a hedge fund so I have no idea but I'd be surprised if they didn't all have their own accounts under one umbrella account, otherwise you'd constantly have conflicting trades. I mean, isn't this how prop firms work? Surely each trader's positions are his own, and shouldn't interact with anyone else's in any way other than they share the same pot of money.

 

[everyonerich]

but it's not the same thing, for the exact reason you made this thread.. I've never worked in a hedge fund so I have no idea but I'd be surprised if they didn't all have their own accounts under one umbrella account, otherwise you'd constantly have conflicting trades.

for eg:

if 1 of the trader have big drawdown, and you wanted to use sub-account. it takes time to transfer additional money so that the trader able to get his trade back on the line.

now if you only have 1 account for multiple trader, if 1 trader had big drawdown, while other trader most likely has up the % for the fund, then you dont need to going through the hassle monitoring/transferring fund to different account as multiple trader on single account pretty much take cares of the entire money in the fund. hypothetically speaking, the fund should be steadily growing in long term.

too bad Oanda just messing this up.

 

[everyonerich]

Or B.....you could be just assuming that hedge funds use retail bookies like Oanda for their billions of dollars. Which is hopelessly naive.

nah.. i know big guy use cmegroup.
CME Group FX Product for Hedge Funds

but since oanda cant trade this way.. so not gonna use it anyway.

 

[Skill Leverage]

I think he's having a hot bath.

 

[MrGecko]

Yeah, well - you can't get p!ssed on halves.

 

[Skill Leverage]

Ha

 

[MrGecko]

Drinking game duly noted... though telling people the rules seems to take half the entertainment out.

Anyway I thought we were just playing a rhyming game.

(does sound like a fun game though)