real vs hedge trading?

imad1

Newbie
Messages
1
Likes
0
hi everyone

i'm new to this and want to know why i cant find anyone discussing real trade rather than hedging. If you have or can raise say £100,000 to invest would it not make more sense to trade in real amounts of forex rather than leveraging and losing your margin if it went bad. this way all you have to do is just wait for the price to move to make your profit- and you could just do this all day long as long as it doesnt crash?(which a strong currency is unlikely to do) and as the forex market is always fluctuating up and down u could just ride those dips and peaks selling and buying when u make a profit and youre not restricted by timing like when youre levaraging? so u just hold onto the currency until it becomes profitable to convert (and with the constant fluctuations in forex- it would be quite often)? Am i missing something? :confused:
 
Firstly, I think you need to be clear on your terms. "Hedge" trading is not the same as using leverage in your trading. The latter is what you're driving at here.

Getting to the main question, the moves in the forex market tend to be quite small during the timeframes most people would be looking to trade. You could sit in a currency for years and not see it move more than a few percent on net.
 

Attachments

  • we're not worthy.jpg
    we're not worthy.jpg
    89.6 KB · Views: 4,786
Top