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Help !!!

Discussion in 'Beginners Bootcamp' started by lanreme02@yahoo.com, Oct 27, 2010.

  1. lanreme02@yahoo.com

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    Hello forum,

    Am back again with question!

    I was using my Demo account and entered a losing trade,
    it re-bounce to a "break even" level with about $5.00 profit so
    i thought of "quickly closing" the trade.

    The platform refuse the transaction saying: "HEDGING IS PROHIBITED" :shocked: or, what's the rigt way to close a losing the trade ? i was surprise that the system allow me to add more losing trade but not closing existing one's!


    Secondly, Limit orders to enter a trade must be placed at "30 pips" from market price! :( is that how it really work in Forex ?

    More so, can some one please explain the difference between: Buy limit and Buy stop. Sell limit and sell Stop.

    Thank you all.

    Newbie
     
    #1 lanreme02@yahoo.com, Oct 27, 2010
    Last edited: Oct 27, 2010
  2. Pharaoh

    Pharaoh Colonel

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    Sounds like you were using MT4. Some platforms require you to open an equal and opposite position to close a trade. In MT4, that isn't the case. If you open an order in the opposite direction, both orders will be open. It sounds like your broker is US based, where the friendly people at the NFA decided that no one in America is smart enough to hedge orders, so they banned it. Just right-click on the trade and select "Close order."

    The distance for limit and stop orders will vary by broker. If you are on a 5 digit broker, 30 is really only 3 pips. If you are on a 4 digit broker, I'd say 30 is way too far of a requirement and would seek out a different broker.
     
  3. lanreme02@yahoo.com

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    Wow!

    Thanks pharaoh, your answer was just all i need.

    i really appreciate you taking the time to reply my post.

    Thanks.
     
  4. Eric Alyea

    Eric Alyea Master Sergeant

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    Knowing what side to buy/sell

    To my understanding the “MT4 plug in” :
    http://www.forexpeacearmy.com/forex-forum/general-forex-talk/10797-mt4-netting-plug.html#post40303
    averages your account so you would ...maybe??,,.. see you were betting against yourself???
    i.e. shooting at both sides from the hedge row of a battle field.
    Jumping on the winning side when it was obvious from the center hedge row hiding place which side you win on. Changing uniforms with the dead of who ever won, hence “hedging in combat”.

    Most systems cancel out you other orders if you do this by mistake or on purpose. Very dangerous stuff in any venue, be careful!

    Establishing separate accounts to short term, BUY, SELL, and Long Term, is one way around the rules.
     
    #4 Eric Alyea, Oct 29, 2010
    Last edited: Nov 10, 2010
  5. Pharaoh

    Pharaoh Colonel

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    I think our new member wasn't really trying to hedge. I believe he was trying to close a trade. Many non-MT4 platforms don't have a "close order" option. They actually require you to open an equal and opposite order to close the existing trade. Platforms like this inherently don't allow hedging, since opposing positions immediately cancel out.

    Personally, I like having hedging as an option. It lets me leave long term position trades on the table undisturbed while taking shorter term trades in the same currency pair in the same account. I'm less than happy that the NFA seems determined to eradicate it.
     
  6. lanreme02@yahoo.com

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    Thank you all for the time to discuss my post!

    @ Eric Alyea, am not trying to hedge, a basic recruit who is just learning the trade has nothing to do with hedging. also, can you please communicate in simple language considering the skill level of a recruit ? i didn't learn neither understand any of the jargon's you wrote. am just a newbie looking to pay my bills ...

    Question: I recently start having to learn reason why i should be using data provider for my chart; the one am about to use is Esignal. please what is the benefit of these so called data providers ?

    @ pharaoh, last time you mention me being with US broker! yes and am currently Demo trading with Interbank FX and their platform runs the MT4 as you put it. i think i feel comfortable with MT4. I have tried Forex.com but i had difficulty seeing their charts clearly! so are other platforms that are not MT4 base. my only problem with the MT4 am using is that it does not allow Conditional orders.

    my question is: do you think it make sense to trade with brokers outside the US ? I mean is my money safe ? i reside in the US though :confused::confused::

    Thanks a million.

    Newbie
     

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