Guys, really?
Same pair Hedge instead of taking a stop.
Open a buy, open a sell.
2 spreads paid.
Net swap at negative (meaning your paying you're broker to keep the trade open).
A losing position that gets bigger as time goes on.
Why do this? There was an old thread about this....
IggyMon described one way to successfully do a same asset hedge which you can take to other asset classes that have these types of differentials everyday.
Buy a stock, buy a put. That's a hedge.
Buy the Eur sell the Gbp. That's a hedge.
Buy the Cad sell some oil.
Hedging is a trading strategy no different from non hedging strategies.
You have to actually have positive expectancy in everything you do when trading. This means you have to test everything. EVERYTHING. Randomly throwing on a same pair hedge just because you don't want to actually take the loss is a terrible idea.
Consider an MSBR.
Same pair Hedge instead of taking a stop.
Open a buy, open a sell.
2 spreads paid.
Net swap at negative (meaning your paying you're broker to keep the trade open).
A losing position that gets bigger as time goes on.
Why do this? There was an old thread about this....
IggyMon described one way to successfully do a same asset hedge which you can take to other asset classes that have these types of differentials everyday.
Buy a stock, buy a put. That's a hedge.
Buy the Eur sell the Gbp. That's a hedge.
Buy the Cad sell some oil.
Hedging is a trading strategy no different from non hedging strategies.
You have to actually have positive expectancy in everything you do when trading. This means you have to test everything. EVERYTHING. Randomly throwing on a same pair hedge just because you don't want to actually take the loss is a terrible idea.
Consider an MSBR.
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