Chained trading possible?

[kjgvbfgfs]

Hi there

With all of the forex brokers one has to always close an open position. I am curious if it is possible to continue trading other pairs? For instance:

1) I enter long EURUSD (buying EUR for USD)
2) I start loosing but instead of closing the position or hedging it,
3) I enter short EURCHF or EURAUD (selling my EUR for CHF or AUD)
4) I close the position opened under 3) ending up with CHF or AUD on my account

Is there a broker out there who offers such trades? If not, why? I realise that one has to have accounts in multiple currencies to do so, but this is hardly a problem.

Thanks in advance!

 

[Pharaoh]

Please don't ask for broker recommendations in Beginner's Bootcamp. Doing so might make Spam Cat take an interest in the responses to our thread. Trust me, you don't want to meet Spam Cat.

You'll fine out quite a bit about finding a good broker here:

Best Forex Broker

As for your question, other than US brokers, most brokers permit direct hedging - simultaneously holding long and short positions on the same pair.

All brokers out there will let you be long on EURUSD and short on EURAUD at the same time. Effectively, this nets to being long on AUDUSD if you get the position sizes correct, but you'll still have to deal with managing your 2 separate positions.

 

[peeterwoolf]

Please don't ask for broker recommendations in Beginner's Bootcamp. Doing so might make Spam Cat take an interest in the responses to our thread. Trust me, you don't want to meet Spam Cat.

You'll fine out quite a bit about finding a good broker here:

Best Forex Broker

As for your question, other than US brokers, most brokers permit direct hedging - simultaneously holding long and short positions on the same pair.

All brokers out there will let you be long on EURUSD and short on EURAUD at the same time. Effectively, this nets to being long on AUDUSD if you get the position sizes correct, but you'll still have to deal with managing your 2 separate positions.

Good answer.

 

[bigdolly]

Hi there

With all of the forex brokers one has to always close an open position. I am curious if it is possible to continue trading other pairs? For instance:

1) I enter long EURUSD (buying EUR for USD)
2) I start loosing but instead of closing the position or hedging it,
3) I enter short EURCHF or EURAUD (selling my EUR for CHF or AUD)
4) I close the position opened under 3) ending up with CHF or AUD on my account

Is there a broker out there who offers such trades? If not, why? I realise that one has to have accounts in multiple currencies to do so, but this is hardly a problem.

Thanks in advance!

Seems unreasonable for me especially in volatile FX environment. Why not closing continuously losing EUR/USD and open, as you believe winning position? Basic MM suggests that EUR/USD has a correlation to EUR/CHF very close to...RANDOM. I may be wrong but I do not consider EUR/USD and some other pair as relative assets as for example highly correlative prices on oil and Russian "GAZPROM" stocks.
So be careful with such wise hedging techniques

 

[Pharaoh]

Different pairs have different correlation levels. If the EURGPB is stable (and it's not exactly a volatile pair), but the EURUSD is moving, that means the GBPUSD would be making a similar move.

 

[pro4Xtrader]

Hi there

With all of the forex brokers one has to always close an open position. I am curious if it is possible to continue trading other pairs? For instance:

1) I enter long EURUSD (buying EUR for USD)
2) I start loosing but instead of closing the position or hedging it,
3) I enter short EURCHF or EURAUD (selling my EUR for CHF or AUD)
4) I close the position opened under 3) ending up with CHF or AUD on my account

Is there a broker out there who offers such trades? If not, why? I realise that one has to have accounts in multiple currencies to do so, but this is hardly a problem.

Thanks in advance!

Its not gonna work unless you have two different strategies for correlated pairs and one of them telling buy and another sell.
If you are doing this for the sake of hedging it does not make any sense without a strategy and besides, if it was USD that moved EURUSD, your EURAUD or any other EURxxx will be of no help

 

[nahiyar]

It is not necessary that pairs move in correlation some times they move opposite, you have to understand their move by watching market some days . First make good analysis then decide either you can do chained trading or not.

 

[downtrend]

It is actually a hedging technique where you buy/sell different pairs to come out as a winner as the day ends or your get to your target. Buying or selling same currency with different pairs is profitable but you have to practice this technique a lot.

 

[Pharaoh]

Since the US banned hedging, if your strategy calls for it, you can use highly correlated pairs (which will sometimes fail to correlate) or else 3 way synthetic hedges as a work around.

 

[bigdolly]

Its not gonna work unless you have two different strategies for correlated pairs and one of them telling buy and another sell.
If you are doing this for the sake of hedging it does not make any sense without a strategy and besides, if it was USD that moved EURUSD, your EURAUD or any other EURxxx will be of no help

Exactly. Correlation is very important in this case, you can check it in myfxbook correlation pair section. I picked Oil and USD/RUB, try to profit on delays between these two changes, thankfully mYbRoKeR's feed is quite fast allowing me to react quickly.