Disliked{quote} AWWWWWWWWWW what's wrong did I mess up your pretty little math world. Every trader here knows when you enter the 2nd trade you have added risk. You dont want to face that issue that is fine with me. But take your math paper in throw it in the trash because unless you also factor in then you can have a loss with that trade, you do not want to face the reality of Forex trading. Factor in your risk but I have exposed your logic and how it fails in real live trading.Ignored
I understand risk. I understand the many risk measures there are. You are talking about positions with no stop loss and no concept of risk and you think you have something I don't understand. What a joke!
Spyder had trouble with this point too. He thought that there was more directional risk in being long 2 contracts, than in being long 4 contracts and short 2 contracts at the same price. There isn't. If you think there is, you know nothing about risk.
If I am flat I have 0 risk. If I am long 1 contract, short 1 contract, same instrument same price, then I have almost no risk too. The only risk is that spreads will widen so much that I'll lose both positions. So Flat= 0 risk, long 1 short 1, very low risk, but still worse than being flat. If I increase it to 2 longs 1 short, then I have directional risk equivalent to 1 contract long. That's all obvious.