DislikedFor example the current price of a pair is 1.2000, you have bought the pair in forex and want to hedge your position in options or in futures for a month.
OPTION: you pay X pips to have the "option" to sell it if the price is down 1.2000 at the end of the month. If the price is above 1.2000 you simply lose the premium (X pips, in this case 50-100 pips).
FUTURES: you sell the pair with no money, simply have to maintain a margin in your account (I think the leverage is 1:20) and at the end of the month you have to pay if the price is above 1.2000 or receive gains if the price is under 1.2000. The value of a pip here is the same that in forex.
Sorry, but my english is not enought good to explain it better.Ignored
Thank you very much for that. i'll try to study futures...
anyway, i need you to comment on this, what if i have a short position USD?JPY (10 lots) in my no-swap broker, and i'll make it a point to trade mini lots, .1 lot and make it a long position, then if i lose 3 dollars, i will close my position, and i will do it 3 X a week, do you think they will still be suspicious on my short position (10 lots)?