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Just learned about hedging, does anyone use it for scalping?

  • #261
  • Edited 8:38am Sep 4, 2020 8:24am | Edited 8:38am
I think When they see the word hedging, they want to see 3 correlated pairs like EU/EC/UC and other combinations like that.
That's the next chapter.

But, they can argue with this page if they want to: https://www.investopedia.com/ask/ans...rex%20options.


Hedging with forex is a strategy used to protect one's position in a currency pair from an adverse move. It is typically a form of short-term protection when a trader is concerned about news or an event triggering volatility in currency markets. There are two related strategies when talking about hedging forex pairs in this way. One is to place a hedge by taking the opposite position in the same currency pair, and the second approach is to buy forex options.
Strategy One
A forex trader can create a “hedge” to fully protect an existing position from an undesirable move in the currency pair by holding both a short and a long position simultaneously on the same currency pair. This version of a hedging strategy is referred to as a “perfect hedge” because it eliminates all of the risk (and therefore all of the potential profit) associated with the trade while the hedge is active.
  • #262
  • Sep 4, 2020 8:45am Sep 4, 2020 8:45am
Quoting OutThere
I think When they see the word hedging, they want to see 3 correlated pairs like EU/EC/UC and other combinations like that. That's the next chapter. But, they can argue with this page if they want to: https://www.investopedia.com/ask/ans...rex%20options. Hedging with forex is a strategy used to protect one's position in a currency pair from an adverse move. It...
This explanation of the "perfect hedge" used to protect against potential volatile market does not make a comparison with the use of a simple close execution.

What is the advantage to adopt such a trade strategy over a simple close all open positions as the market approaches news event?
Know what you trade
  • #263
  • Sep 4, 2020 8:45am Sep 4, 2020 8:45am
Quoting OutThere
I think When they see the word hedging, they want to see 3 correlated pairs like EU/EC/UC and other combinations like that. That's the next chapter. But, they can argue with this page if they want to: https://www.investopedia.com/ask/ans...rex%20options. Hedging with forex is a strategy used to protect one's position in a currency pair from an adverse move. It...
Once you've established this "hedge", think about the sheer power of placing entry orders 30 pips above and below the "hedge", thereby straddling the hedge. Think about how that could put some forward thrust to your account equity, Think about it...
  • #264
  • Sep 4, 2020 8:47am Sep 4, 2020 8:47am
Yes, I know you can google it and find somewhere that will validate your insanity. I mean, Tumblr exists. Doesn't make it right, or accurate.

Quoting OutThere
This version of a hedging strategy is referred to as a “perfect hedge” because it eliminates all of the risk (and therefore all of the potential profit) associated with the trade while the hedge is active
Yes, that's what the site says. Enjoy the "perfect hedge" while losing swap fees, and being at risk of margin calls from spread widenings, and whatever other stuff I've not bothered to consider in this depraved scenario.

We can go round and round in circles, and that's all that will happen. You guys have this love affair with some seriously stupid fucked-up stuff.
Congratulations ScalaFX for coming out of the closet!
  • #265
  • Sep 4, 2020 8:49am Sep 4, 2020 8:49am
Their arguments are:

stupid
fucking
shit

hahahahahah!!!
Maadik Hugiis. IQ 69.
  • #266
  • Sep 4, 2020 8:53am Sep 4, 2020 8:53am
Quoting MoneyZilla
{quote} Not disrespectful to you and anyone, especially when the discussion is made in a normal way like this. To get FAST to a profitable hedging, first one has to build a signaling system that delivers some space in between the signals. It is an advantage, if the trending signals are slightly bigger number of the locking ones. That comes easy. You will see it, when deep dive in there. Positive pips between the signals: {image}{image} Profitable hedging can be achieved out of a negative pips base signals, too. Like buys above and sells below. Same...
@MoneyZilla: The first chart shows 1 1 2 2 etc.

Question:

First 1 is this call and Put at the same time?
  • #267
  • Sep 4, 2020 8:53am Sep 4, 2020 8:53am
Quoting nubcake
Yes, I know you can google it and find somewhere that will validate your insanity. I mean, Tumblr exists. Doesn't make it right, or accurate. {quote} Yes, that's what the site says. Enjoy the "perfect hedge" while losing swap fees, and being at risk of margin calls from spread widenings, and whatever other stuff I've not bothered to consider in this depraved scenario. We can go round and round in circles, and that's all that will happen. You guys have this love affair with some seriously stupid fucked-up stuff.
Well, the 'static hedge' is where you are stuck at and you don't see anything past that. Buy it and sell it and get stuck and that is all you see.


Since Investopedia is one of us morons, why don't you indulge us how the real hedging is done according to your definition?
  • #268
  • Sep 4, 2020 8:54am Sep 4, 2020 8:54am
Quoting MoneyZilla
Their arguments are: stupid fucking shit hahahahahah!!!
brilliant observation...well stated.
  • #269
  • Sep 4, 2020 8:55am Sep 4, 2020 8:55am
Quoting MoneyZilla
Their arguments are: stupid fucking shit hahahahahah!!!
You become more accurate and coherent with the less you speak. Consider speaking less all of the time.
Congratulations ScalaFX for coming out of the closet!
  • #270
  • Sep 4, 2020 8:56am Sep 4, 2020 8:56am
They also don't know the fact that on two hedged trades only one commission is paid with the close by function.

They also don't know that hedging increases the margin level abvailable. They claim it is the other way around... hehehebe!

This is their LEVEL OF TRADING EXPERTISE!!!

5️-s
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Maadik Hugiis. IQ 69.
  • #271
  • Sep 4, 2020 8:59am Sep 4, 2020 8:59am
I have seen idiots here. Many. But these 4-5 folks are the cherry on the top of the cake!!!

The are BRILLIANT IDIOTS!🧅🧄
Maadik Hugiis. IQ 69.
  • #272
  • Sep 4, 2020 9:00am Sep 4, 2020 9:00am
Quoting renkotop
{quote} @MoneyZilla: The first chart shows 1 1 2 2 etc. Question: First 1 is this call and Put at the same time?

Not at the same time.

Same time hedging works only on annual trends.
Maadik Hugiis. IQ 69.
  • #273
  • Sep 4, 2020 9:00am Sep 4, 2020 9:00am
Quoting MoneyZilla
They also don't know the fact that on two hedged trades only one commission is paid with the close by function. They also don't know that hedging increases the margin level abvailable. They claim it is the other way around... hehehebe! This is their LEVEL OF TRADING EXPERTISE!!! 5️-s {image} {image} {image}
We have established that only one commission is paid with the close by function. Fact.

I am certain we can establish the facts about margin.

Anybody knows explain and/or post the link.

Or we can test this out.
Know what you trade
  • #274
  • Sep 4, 2020 9:05am Sep 4, 2020 9:05am
Still waiting for nubcake and GEfx to tell up how the proper hedging works.
  • #275
  • Sep 4, 2020 9:09am Sep 4, 2020 9:09am
Quoting BWilliam
{quote} We have established that only one commission is paid with the close by function. Fact. I am certain we can establish the facts about margin. Anybody knows explain and/or post the link. Or we can test this out.
https://www.forexfactory.com/thread/...4#post13145284

https://www.forexfactory.com/thread/...0#post13149800

https://www.forexfactory.com/thread/...8#post13145898
Maadik Hugiis. IQ 69.
  • #276
  • Sep 4, 2020 9:11am Sep 4, 2020 9:11am
Quoting OutThere
Still waiting for nubcake and GEfx to tell up how the proper hedging works.
I refer to it as the big tease.
  • #277
  • Sep 4, 2020 9:12am Sep 4, 2020 9:12am
Quoting GEfx
{quote} I refer to it as the big tease.
I see. Maybe you should post on a soft porn site then.
  • #278
  • Sep 4, 2020 9:25am Sep 4, 2020 9:25am
Quoting BWilliam
{quote} I am certain we can establish the facts about margin. Anybody knows explain and/or post the link. Or we can test this out.
I've explained this...from the perspective of a US trader. You need two accounts to simultaneously hold a buy and a sell trade on the same currency. The cost to open and close the trade is double, and the margin required to do the trade is also...doubled. But in reality, a single US account, with it's restrictions, will reflect the same margin totals, at least approximately, as an account overseas that is being "hedged". The US account, when you counter a buy trade with a sell trade, will close the buy trade, freeing margin. The exact same thing happens in the "hedging" account, because "hedging" replicated the closed trade. Nubcake has said this several times. The same thing holds true with partial "hedging". When you sell 2 lots against 3 buy lots, the US account will close 2 buy lots, leaving 1 buy open. If you "hedge" the 3 buy lots with 2 sell lots, the same net position results: one buy lot. The margin impact reflects one buy lot. There is nothing sophisticated or smart about "hedging", but in the US, it's wasteful and stupid.
  • #279
  • Sep 4, 2020 9:33am Sep 4, 2020 9:33am
Quoting GEfx
..... but in the US, it's wasteful and stupid.
It's true for US accounts as you have written.
Know what you trade
  • #280
  • Sep 4, 2020 9:36am Sep 4, 2020 9:36am
OK, so, US is out. No one said it'd work in US.
This strategy is not meant for the center of the world. It's for suburbs of the world only.
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