Hey Traders,
Let me throw a theory at ya.
Let's assume that we have 2 forex accounts with 500x leverage. We deposit 50 bucks to each.
What if right before important data comes like todays services data or tomorrow's NFP, we buy and sell GOLD at the same time with the two accounts? One account gets blown out and 50$ is lost (and negative balance protection saves you from more losses) and the second account is running with a 10-20$ gold spike which with the leverage makes about 4-500$ with 20 mini contracts
Wouldn't that be guaranteed profit everytime if you trigger buys and sells 30 seconds before the data is out?
In which cases could this strategy cause losses in both accounts?
All opinions and critiques welcome https://cdn-resources.faireconomy.me....png?v=1.0.0.1
Edit: I'm aware that in the US some brokers don't allow hedging, but my broker in Australia allows hedging so I guess this wouldn't work with US brokers unless you use two different ones
Anyone also know the legality of this perhaps?
Let me throw a theory at ya.
Let's assume that we have 2 forex accounts with 500x leverage. We deposit 50 bucks to each.
What if right before important data comes like todays services data or tomorrow's NFP, we buy and sell GOLD at the same time with the two accounts? One account gets blown out and 50$ is lost (and negative balance protection saves you from more losses) and the second account is running with a 10-20$ gold spike which with the leverage makes about 4-500$ with 20 mini contracts
Wouldn't that be guaranteed profit everytime if you trigger buys and sells 30 seconds before the data is out?
In which cases could this strategy cause losses in both accounts?
All opinions and critiques welcome https://cdn-resources.faireconomy.me....png?v=1.0.0.1
Edit: I'm aware that in the US some brokers don't allow hedging, but my broker in Australia allows hedging so I guess this wouldn't work with US brokers unless you use two different ones
Anyone also know the legality of this perhaps?