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Cable Update (GBP/USD) without Idiots 23 replies

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Attachments: Cable Update (GBPUSD)
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Cable Update (GBPUSD)

Quoting dantpm
{quote} That isn't quite how trading works. You can hold buy and sell transactions open for the same currency pair. These transactions will stay open until they are closed. Once you open a transaction it must be closed and not just offset with a transaction in the opposite direction. While holding the opposing transactions your margin and equity are not significantly impacted. While holding the open transactions if the market moves such that one of the transactions becomes more profitable and you close the profitable transaction followed by waiting...
Let's make it interesting. I'll give you a million dollars if you can explain to me how this hedging is not LITERALLY closing out a position?

Why would you EVER hold two opposite positioons to pay double the spread and a higher margin ?? You have zero market exposure but you still decide to pay the spread and spend margin. Why?

Let me tell you why. Because most traders are emotionally not willing to close (accept) a losing trade. And brokers know that. So, they offer this kind of trading accounts because it makes them extra free money through spread/commissions.
Quoting Waveskierrob
{quote} Go on me babies...
Is that horse racing ?......
I come from the future.
Quoting Pat Chiko
{quote} GU Partial TP Feeling sleepy with this slow movement. But, I just cannot sleep, coz it's painful to sleep.{image}
Painful, why?
Quoting catch22
{quote} Let's make it interesting. I'll give you a million dollars if you can explain to me how this hedging is not LITERALLY closing out a position? Why would you EVER hold two opposite positioons to pay double the spread and a higher margin ?? You have zero market exposure but you still decide to pay the spread and spend margin. Why? Let me tell you why. Because most traders are emotionally not willing to close (accept) a losing trade. And brokers know that. So, they offer this kind of trading accounts because it makes them extra free...
Part 1. The buy and sell margin is offset not increased.
Part 2. You do pay double the fees if your account pays fees or suffers the spread 2x on both transactions.
Part 3. I attempted to explain opening buy and sell transactions and closing these transactions but you obviously didn't get it.
Part 4 if you took the time to follow the posts of some who have been successful, you would obviously learn something new but again you apparently aren't interested.

I did politely attempt to explain it.
or alternative scenario
Attached Image (click to enlarge)
Click to Enlarge Name: GU 02.08 1H.png Size: 45 KB
Always trade your own plan...I don't provide trading signals.
Quoting catch22
{quote} Let's make it interesting. I'll give you a million dollars if you can explain to me how this hedging is not LITERALLY closing out a position? Why would you EVER hold two opposite positioons to pay double the spread and a higher margin ?? You have zero market exposure but you still decide to pay the spread and spend margin. Why? Let me tell you why. Because most traders are emotionally not willing to close (accept) a losing trade. And brokers know that. So, they offer this kind of trading accounts because it makes them extra free...
Here is ChatGpt's answer.
Please pay me 1 million dollars

Closing out a position refers to the process of liquidating an investment, either by selling it or offsetting it with an opposing position, in order to exit a trade or reduce exposure to market risk. Hedging, on the other hand, involves taking an offsetting position in order to reduce the risk of an existing investment, without necessarily liquidating it. So while closing out a position can be a form of hedging, hedging can also be achieved without completely closing out a position. The goal of hedging is to manage risk, while the goal of closing out a position is to exit a trade or reduce exposure to market risk.
in wondering about yourself, you forgot what you came here to be part of
Quoting catch22
{quote} Let's make it interesting. I'll give you a million dollars if you can explain to me how this hedging is not LITERALLY closing out a position? Why would you EVER hold two opposite positioons to pay double the spread and a higher margin ?? You have zero market exposure but you still decide to pay the spread and spend margin. Why? Let me tell you why. Because most traders are emotionally not willing to close (accept) a losing trade. And brokers know that. So, they offer this kind of trading accounts because it makes them extra free...
Loads of examples on my thread ....
Soon To Be Temporarily Suspended Again
Quoting knkie
{quote} Here is ChatGpt's answer. Please pay me 1 million dollars Closing out a position refers to the process of liquidating an investment, either by selling it or offsetting it with an opposing position, in order to exit a trade or reduce exposure to market risk. Hedging, on the other hand, involves taking an offsetting position in order to reduce the risk of an existing investment, without necessarily liquidating it. So while closing out a position can be a form of hedging, hedging can also be achieved without completely closing out a position....
Looks like a million dollars heading your way...US I hope...
Soon To Be Temporarily Suspended Again
Quoting knkie
{quote} Here is ChatGpt's answer. Please pay me 1 million dollars Closing out a position refers to the process of liquidating an investment, either by selling it or offsetting it with an opposing position, in order to exit a trade or reduce exposure to market risk. Hedging, on the other hand, involves taking an offsetting position in order to reduce the risk of an existing investment, without necessarily liquidating it. So while closing out a position can be a form of hedging, hedging can also be achieved without completely closing out a position....
Where exactly is the answer? The question was:

I buy 1 unit of something, and then i sell 1 unit of the exact same thing. How is this "hedging" any different from closing out a position?

and check this out:

Quoting knkie
{quote} The goal of hedging is to manage risk, while the goal of closing out a position is to exit a trade.
Kind of what i'm trying to say. When you are doing offseting trades you close out, you're not hedging. Two different things.
Quoting Waveskierrob
{quote} Looks like a million dollars heading your way...US I hope...
Yay
im looking at travel brochures as we speak
haha
in wondering about yourself, you forgot what you came here to be part of
Quoting Waveskierrob
{quote} Looks like a million dollars heading your way...US I hope...
Seriously?

YOU really believe that having 2 opposite trades open is any different than having no position at all? Ok, thanks for that
Good idea! And still peak at my latest post
Quoting knkie
{quote} Here is ChatGpt's answer. Please pay me 1 million dollars Closing out a position refers to the process of liquidating an investment, either by selling it or offsetting it with an opposing position, in order to exit a trade or reduce exposure to market risk. Hedging, on the other hand, involves taking an offsetting position in order to reduce the risk of an existing investment, without necessarily liquidating it. So while closing out a position can be a form of hedging, hedging can also be achieved without completely closing out a position....
You haven't liquidated an investment by offsetting it. You still have two transactions to settle if the investments are offset. The simple explanation is that different people/parties may hold the other side of the transactions.
Quoting catch22
{quote} Where exactly is the answer? The question was: I buy 1 unit of something, and then i sell 1 unit of the exact same thing. How is this "hedging" any different from closing out a position? and check this out: {quote} Kind of what i'm trying to say. When you are doing offseting trades you close out, you're not hedging. Two different things.
i literally put your question to the devine AI bot:

I buy 1 unit of something, and then i sell 1 unit of the exact same thing. How is this "hedging" any different from closing out a position?

The key difference between hedging and closing out a position is the motivation behind the trade. When you buy and then sell the exact same thing, you are effectively cancelling out your position, which is considered closing out a position. Closing out a position is used to exit a trade and eliminate exposure to market risk.
On the other hand, hedging involves taking a second offsetting position with the intention of reducing risk in an existing investment. So in a hedging scenario, you might buy 1 unit of an asset as a long-term investment, and then sell a futures contract on that same asset as a hedge against price changes. The goal of hedging is to limit potential losses, while the goal of closing out a position is to liquidate an investment.
In your example, you have closed out your position and have no remaining exposure to market risk, whereas in a hedging scenario, you would still have an ongoing investment, but with reduced market risk.


Not only are you arguing with some of the best traders on this thread, you are also taking on the AI God



I take bitcoin and also have a paypal account so just tell me how you would like to transfer the million $$
in wondering about yourself, you forgot what you came here to be part of
Quoting Waveskierrob
The GU ATM, SHORT 1.2095 no sl no tp
Closed SHORT 1.2060 +35 monies...
Soon To Be Temporarily Suspended Again
Quoting Waveskierrob
{quote} Loads of examples on my thread ....
Let's do it this way.

Have two accounts. One is this "hedging" account and the other one is just netting. And let's do the same trades on both accounts. In this hedge account you do your hedges and the other account has same trades but since it doesn't have hedging allowed, it just nets everything out. Show me please, that your hedging account makes more money with the same trades
Quoting catch22
{quote} Seriously? YOU really believe that having 2 opposite trades open is any different than having no position at all? Ok, thanks for that
Not only believe but proved it time and time again, you're welcome
Soon To Be Temporarily Suspended Again
Quoting knkie
{quote} i literally put your question to the devine AI bot: I buy 1 unit of something, and then i sell 1 unit of the exact same thing. How is this "hedging" any different from closing out a position?

The key difference between hedging and closing out a position is the motivation behind the trade. When you buy and then sell the exact same thing, you are effectively cancelling out your position, which is considered closing out a position. Closing out a position is used to exit a trade and eliminate exposure to market risk. On the other...
Wow, i'm arguing with interesting people. Can you actually read what you posted? It literally says that it's closing out a position, lol.
Quoting Pat Chiko
{quote} run on algo to lock better price
Can you share it publicly with us all? Or is it private?
Quoting catch22
{quote} Wow, i'm arguing with interesting people. Can you actually read what you posted? It literally says that it's closing out a position, lol.
wheres my money
in wondering about yourself, you forgot what you came here to be part of
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