1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Hedge question

Discussion in 'Beginners Bootcamp' started by borisofoz, Jan 20, 2011.

  1. borisofoz

    borisofoz Private

    Joined:
    Oct 25, 2010
    Messages:
    21
    Likes Received:
    0
    Hey All

    what are our options for hedging, as in buy and selling at the same time?

    If it cannot be done on the one account, can we open a sub account or an account with another broker and do it that way?

    As in I place a buy with one broker and a sell with the other

    Also, the FIFO rule is painfull. Do many expirienced traders use multiple accounts to overcome these issues?

    Cheers
     
  2. Vito_C.

    Vito_C. Private, 1st Class

    Joined:
    Nov 3, 2010
    Messages:
    29
    Likes Received:
    7
    You can hedge with different currency pairs: EURUSD with USDCHF.
     
  3. borisofoz

    borisofoz Private

    Joined:
    Oct 25, 2010
    Messages:
    21
    Likes Received:
    0
    G'day Vito_C

    So they allways behave opposite to each other? Thats good to know I will check that out.

    Im interested in a range trading strategy.....
    I'd Rather be able to hedge the same currency pair. So I could buy the AUD/USD with a trailing stop, and sell the AUD/USD with a trailing stop for example. I'm thinking the second account is the only way?, by placing the buy order with one broker, and the sell order with the other.

    Cheers.
     
  4. borisofoz

    borisofoz Private

    Joined:
    Oct 25, 2010
    Messages:
    21
    Likes Received:
    0
    Are there any other pairs that can be hedged with another?

    cheers
     
  5. dkami

    dkami Sergeant

    Joined:
    Apr 13, 2010
    Messages:
    744
    Likes Received:
    32
    Hollo and welcome to FPA you can always ask your broker if you can open another account with them i think most will allow this i have 2 accounts with same broker so i could hedge on same pair if i wanted to but i dont do it i dont see the point personly
    About other pairs that can be hedged with another yes if the USD is week most ccys will get stronger against the USD but not always so you must be very carfull if hedging with two differnt pairs IMHO no ccy pair corilates with another ccy pair all the time

    Hope this helps
     
    #5 dkami, Jan 21, 2011
    Last edited: Jan 21, 2011
  6. borisofoz

    borisofoz Private

    Joined:
    Oct 25, 2010
    Messages:
    21
    Likes Received:
    0
    Hi Dkami

    Thanks.

    I had a good day today. I just financed my first trading account, by selling a B.A.S.E canopy for $1000 dollars. So it will be time to play soon.

    Forex Peace Army! For the Win!

    All the best.
     

Share This Page