Forex Hedging

[oiltanker]

anyone do it? anything that works trading wise [please-not the 'interest hedge']

the one on the scalping thread looks interesting about going short and long in euro and cable. as they both go the same way one will win.

 

[JohnG FX]

anyone do it? anything that works trading wise [please-not the 'interest hedge']

the one on the scalping thread looks interesting about going short and long in euro and cable. as they both go the same way one will win.

Hello Oiltanker,

I allways hedge, but I forward hedge with options, so I will buy a call or a put 1-3 weeks in advance of where I think the price is likely to be which enables me to take an opposing spot position risk free when the price gets to those levels if I think it will turn or just run with the option if it breaks the level

You can hedge by legging the crosses if forex options are not available but I tend not to use those so much now,

Having said that I normaly trade cable, I'm currently spot flat on cable but short on GBPJPY and long on GBPCHF

 

[AsifA]

anyone do it? anything that works trading wise [please-not the 'interest hedge']

the one on the scalping thread looks interesting about going short and long in euro and cable. as they both go the same way one will win.

Yup I do it. 2 accounts with 2 different firms. Do a buy and a sell as close to each other during the price fluctuation. Ideally if you get a sell higher than the buy you have the extra pips. Apply stop losses on both. Obviousely your return is less but what s better than risking 0 ?

 

[oiltanker]

it seems hedging is best in ranging markets?