Safe Hedging System - Daily Swap | Page 3 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

What will be the swap rate for Friday after triple swap? 6 replies

Close orders EA for hedging system 8 replies

Simple Hedging system for newbies 27 replies

Swap Close, Swap Open ? 3 replies

Hedging System 10 replies

Attachments: Safe Hedging System - Daily Swap
Exit Attachments

Safe Hedging System - Daily Swap

  • #41
  • Apr 15, 2007 12:46am Apr 15, 2007 12:46am
Neo,

Can I just confirm that you only exit gbp/jpy when you go into +100 pips profit? When you are in a losing position with gbp/jpy you sit it out and wait for it to come back? At that time (could be months) do you continue to add to your positions using the swap profits?

BurgerKing,
Would love to hear more on your hedge system using the different pairs you just mentioned.
  • #42
  • Apr 15, 2007 12:51am Apr 15, 2007 12:51am
I have been doing carry trades live with real money since more than one year

My open positions are:
Buy GBPJPY 1 lot
Sell CHFJPY 2 lots
Sell GBPUSd 1 lots

I have seen a swing of negative as well as a positive difference of about 1000 pips i.e my account at a time was about -$ 10000 and another time was $ + $10000
  • #43
  • Apr 15, 2007 1:17am Apr 15, 2007 1:17am
Quoting forexwoman
I have been doing carry trades live with real money since more than one year

My open positions are:
Buy GBPJPY 1 lot
Sell CHFJPY 2 lots
Sell GBPUSd 1 lots

I have seen a swing of negative as well as a positive difference of about 1000 pips i.e my account at a time was about -$ 10000 and another time was $ + $10000
Based on current rates: (ie after April 13th)
Buy GBPJPY 1 lot = Buy 100K GBP, Sell 23.685M JPY
Sell CHFJPY 2 lots = Sell 200K CHF, Buy 19.628M JPY
Sell GBPUSD 1 lots = Sell 100K GBP, Buy 198.66K USD

Effectively,
* GBP neutral, you do not hold any GBP in your hands as it is fully hedged
USD Long 198.66K
JPY Short 4.057M
Short CHF 200K
which is equivalent to:
Long 1.65 Lots USDCHF = (+165K USD, - 200KCHF)
Long 0.34 Lots USDJPY = (+34K USD, - 4.05M JPY)
These lottage are dependent on current currency prices. Do not be mistaken to assume that these lot ratios are valid for last year but only from this day. By Wednesday, the ratio will be different.

If you could tell us what are prices of your GBPJPY, CHFJPY and GBPUSD positions, I can better give you your actual equivalent positions.
  • #44
  • Apr 15, 2007 1:39am Apr 15, 2007 1:39am
Quoting the bhoy
BurgerKing,
Would love to hear more on your hedge system using the different pairs you just mentioned.
Once you understand how to break down a position or several positions into bare currencies like i was doing in my last posts, you will have better idea how good/bad a hedging system works.

Perhaps I'd give you a simple idea:

Go Long EURCHF.
Trigger, Plot Bollinger and RSI on H1
Wait for price to touch bottom of Band. Confirm with RSI < 40.
Proper Money Management is required. If you plan to expose 50% of your money in this system, expose only 2% on your 1st position. additional 2% everytime the price kept touching down consecutively. once you are in profit, close em and wait for the next opportunity.
Remember, 2% only each time even if you are willing to risk 50% in the long term. Heck I'd be happy with just 1%.. A hedge fund is not a sprint. Its a Marathon! In case yo managed to find a good profit (ie, a short cut path to your marathon) TAKE IT! Hedge Fund is giving consistent albeit small profit to clients. They will be happy if you can give them 2~3% monthly! Banks give only 5% annually!
  • #45
  • Apr 15, 2007 8:36pm Apr 15, 2007 8:36pm
Burger King and others,

Just wondering if you have ever traded options as a combination with your forex trades? I agree with you about properly structuring your trades to truly reflect a pure hedge.

Let me throw out an idea from my earlier post regarding how a trader might setup the same hedge but use put options instead of shorting high interest pairs. These are rough numbers, but close to current conditions.

Long Spot FX in GBP/JPY giving + $20.55 in swap.
Short Spot FX in CHF/JPY paying - $3.35 in swap.
Short Spot FX in GBP/USD giving + 0.30 in swap
TOTAL SWAP $17.50

Long one June usd/chf PUT option at a strike price of 1.2100 would cost $1270 to buy. It would expire June 14th. This is like owning 1 lot, or 100,000 units and having the right, but not the obligation to be short usd/chf from 1.2100 anytime before June 14th. The cost is based on buying at market, not trying to trade into it.

For the sake of time, I haven't gotten into the exact amounts of spot FX you need to own to balance out the position to neutral cash risk. This was pointed out in an early post. I just wanted to throw out this concept and see if anyone is doing this............?

The reason for going with an option is that you don't pay $9.40 per day which up to June 14th would add up to approximately $550 of interest. The option costs more ($1270) and that could be somewhat covered by the interest that is made from the other pairs (Approx. $1032 by June 14th). Another potential loss is the pip movement from wherever usd/chf was when you setup this hedge idea. Currently 1.2133, so minus 1.2100 and leaves a "potential" loss of 33 pips or $271.92.

SO WHY DO THIS?


It leaves you long USD, where your account can capture any potential bullish movement in the USD, and worst case scenario you are going to lose $541.92

(Disclaimer: These numbers are very close, but don't allow for slippage, spread cost for entering the trade, or my tired brain)

Because you have the right, but not the obligation to be short usd/chf from 1.2100 it also leaves you short gbp/usd. Pretend that USD rallies 200 pips in about 59 days from now. June 14 here is what happens:

  1. The put option you bought on usd/chf expires worthless.
  2. GBP/JPY is wherever it is, and chf/jpy is most likely range bound (Should CHF get some crazy bullish news, you might have to exercise your worthless put option in order to balance out the hedge)
  3. The short GBP/USD is in the money by 200 pips, which is now putting $2000 in your account.
  4. Total profit of the account in 59 days, would be about $1750. Giving you a risk/reward of approx. 1:3

Obviously you can calculate the same thing happening, with a 20 pip gain or 400 pip gain, instead of a 200 pip gain. This example has a direction bias, which is bullish USD... but you could easily do the same thing and be bullish GBP or NZD or whatever currency you pick. AND if your broker pays better swap, then that might make up for my rounding off calculations.

However, when I look at this, because of the directional bias it might be just as well to do a bull call spread in USD/CHF going long 1.2100 call and short 1.2300 call for a net cost of $660 and potential gain of $1340.

This example isn't the greatest one, but I wanted to take the time to throw it out for discussion, poke holes in it, etc. If someone wanted to be LONG USD with very low risk for the next couple of months, this is one way to do it.

Good Trades,
Yukoner

  • #46
  • Apr 15, 2007 10:14pm Apr 15, 2007 10:14pm
It was extremely unfortunate that Forex Factory crashed just after I posted some heavy numbers supporting my claim about Neo's 4 pairs vs my 2 pair equivalent. But for the sake of everyone not in the know, I'd post those numbers once more.

According to Neo's statement:
Quote
On a USD Selloff you are going to have USD/CHF going down, where your USD/CHF Short position will be gaining considerably.
Your GBP/USD position will gain as well, which will go against you since you are going short, but your GBP/JPY will get a boost because of the stronger GBP.
Your CHF/JPY will probably also go up, but this pair is so much more timid compared to GBP/JPY, the movement on GBP/JPY will probably cover all your losses then some.
I'd like to put that to the test by taking positions during Feb 26 to Mar 2 when the currency market had a big selloff.

Neo's 4 Pair Hedge
Open prices of the following pairs as of Feb 25, 18:00 EST
Long GBPJPY 237.74
Short GBPUSD 1.9643
Short CHFJPY 98.23
Short USDCHF 1.2315

Close prices as of Mar 2 16:00 EST
GBPJPY 226.97 = - 1077 pips @$8.56 per pip = -$9219.12
GBPUSD 1.9432 = +211 pips @$10 per pip = +$2110
CHFJPY 95.99 = +224 pips @8.56 per pip = +$1917.44
USDCHF 1.2165 = +150 pips @$8.22 per pip = +$1233
TOTAL P/L = -$3958.68

I was wondering why USDCHF did not bail you out as you strongly worded above? Please do not give such "unfounded" statement not knowing the numbers to back such claim. Novices are so easily tempted only to loose big time..


BurgerKing's 2 Pair Equivalent
Open prices of the following pairs as of Feb 25, 18:00 EST
Long 1.16 Lots USDJPY @121.04
Short 0.177 Lots USDCHF @1.2315

Close prices as of Mar 2 16:00 EST
USDJPY 116.81 = -490.68 pips @$8.56 per pip = -$4200.22
USDCHF 1.2165 = +26.55 pips @8.22 per pip = +$218.241
TOTAL P/L = $3981.98

Difference is less than 1%. This is an extremely accurate equivalent. Is it Coincidence? Is it Magic? Or is it plain and absolute fact?

Be noted that I am not discouraging anyone about Neo's 4 Pair Hedge. What I have been telling people is WHEN to enter this Hedge. Based on my 2 Pair equivalent, this 4 pair hedge is 85% Long USDJPY and 15% short USDCHF. Therefore, what I have said before and I'd said it again, enter when USDJPY makes a dip because this is predominantly Long USDJPY. Should USDCHF make 6 times more volatility than USDJPY then and only then would I tell you to watch for USDCHF instead.
  • #47
  • Apr 15, 2007 11:52pm Apr 15, 2007 11:52pm
Quoting BurgerKing
It was extremely unfortunate that Forex Factory crashed just after I posted some heavy numbers supporting my claim about Neo's 4 pairs vs my 2 pair equivalent. But for the sake of everyone not in the know, I'd post those numbers once more.

According to Neo's statement:

I'd like to put that to the test by taking positions during Feb 26 to Mar 2 when the currency market had a big selloff.

Neo's 4 Pair Hedge
Open prices of the following pairs as of Feb 25, 18:00 EST
Long GBPJPY 237.74
Short GBPUSD 1.9643
Short CHFJPY 98.23
Short USDCHF 1.2315

Close prices as of Mar 2 16:00 EST
GBPJPY 226.97 = - 1077 pips @$8.56 per pip = -$9219.12
GBPUSD 1.9432 = +211 pips @$10 per pip = +$2110
CHFJPY 95.99 = +224 pips @8.56 per pip = +$1917.44
USDCHF 1.2165 = +150 pips @$8.22 per pip = +$1233
TOTAL P/L = -$3958.68

I was wondering why USDCHF did not bail you out as you strongly worded above? Please do not give such "unfounded" statement not knowing the numbers to back such claim. Novices are so easily tempted only to loose big time..


BurgerKing's 2 Pair Equivalent
Open prices of the following pairs as of Feb 25, 18:00 EST
Long 1.16 Lots USDJPY @121.04
Short 0.177 Lots USDCHF @1.2315

Close prices as of Mar 2 16:00 EST
USDJPY 116.81 = -490.68 pips @$8.56 per pip = -$4200.22
USDCHF 1.2165 = +26.55 pips @8.22 per pip = +$218.241
TOTAL P/L = $3981.98

Difference is less than 1%. This is an extremely accurate equivalent. Is it Coincidence? Is it Magic? Or is it plain and absolute fact?

Be noted that I am not discouraging anyone about Neo's 4 Pair Hedge. What I have been telling people is WHEN to enter this Hedge. Based on my 2 Pair equivalent, this 4 pair hedge is 85% Long USDJPY and 15% short USDCHF. Therefore, what I have said before and I'd said it again, enter when USDJPY makes a dip because this is predominantly Long USDJPY. Should USDCHF make 6 times more volatility than USDJPY then and only then would I tell you to watch for USDCHF instead.

BurgerKing:

I have to say that I am very impressed with your work, and I think you have done a remarkable job in shooting holes in my trade. But I have to respectafully disagree with you on your comments on what I have posted here. You have taken my strategy out of context, and you have created a scenario that is highly unlikely and extreme prejudicial in looking at my trade.

As I have pointed out before, if based on your theory, that someone would enter the trade at 2/25 18:00EST, which is not the time that I suggest entry, nor the exact manner which I suggested entry. As I matter of fact if I recall, my entries were timed just before the market close, and to be entered at a mini-lot or 1-10th of position per day if the final goal was to enter a full lot set. After 10 days, instead of seeing red, you should have been seeing profit.

If you do you numbers on a daily basis, which I really don't have the time to get it done right now, I would post a daily P/L based on 10th entry for 10 days, and you will see that after 10 days, we are still out with a positive income.

To further explore my options, if at 2/25 the orders are already in place, then a stop of 1 PIP protection will be placed on all GBP/JPY long orders. Based on your own number, at the end of day 3/2 you will actually see +$5,260.44 PLUS whatever swap accumulated and $8.56 for that 1 PIP

I guess it is very easy to look at a theory or strategy and tear it down for kicks. But if you do not follow the manner which the strategy is meant to work and enter the protective stops as suggested, then why would you want to follow my strategy in the first place?

You cannot pick and choose parts of my strategy and say, "hey, I like this part" and ignore the others. What you are posting here is misleding the novice traders as you are accusing me of doing, and at the same time you are practically taking my words out of its context and twisting it.

If I were to use your straddle script on multiple pairs and then I say "BurgerKing's script don't work, it caused my broker to lock my platform", Don't use it because you will get stuck in a trade and can't get out. You would probably call me an idiot and say to read your post about that and your warning of what might happen. But what if I choose to ignore that and do it anyways and show you proof that your script don't work (screenshots, video recording of platform lockup, etc..), how would you feel?

Furthermore, what you are doing here is curve-fitting the results with my strategy. The same thing you are doing now I can do as well and show you a remarkable return by picking a period on the chart. And I am sure if I were to do that, I can absolutely show you a gain of more than that $3981.98 number you end up with.

Anyways, I do not appreciate being flamed at for sharing my strategy, especially the flamer does not even take the time to read my post correctly in the first place. I respect you and what you have contributed, BurgerKing, but I have to say what you are doing here I do not agree with. If you feel that your "Hedge" is a much better option than mine, then by all means please start a thread and show us, instead of hijacking my thread and use it to show your hedge.

Thats just how I feel, I apologize if I used any harsh words there, but sometimes I get a little heated in an intellectual debate such as this.

neo
  • #48
  • Apr 16, 2007 7:34pm Apr 16, 2007 7:34pm
Hi everybody.

Nice thread and nice system neo. I'm glad to see that we have trader who realy understand about hedge working out together to make a nice system!

Hey Neo don't get me wrong but I have a little question and i won't make a thread just for this question =)... Here it goes...

What if we Buy EUR/USD and Buy USD/CHF looking for $2,05 swap at 1 standard lot each?

Cause U/Ch and E/U is extremely correlated about 93% 1 year trailling...

And dollar should go up at sometime since U/Ch have a daily range greater than E/U we will be in nice profit at sometime...

I'm just want to know if you guys think that is good enought for a hedge

Thanks for any reply and lets keep this thread rolling up

Regards
No Brain, no Gain.
  • #49
  • Edited 8:37pm Apr 16, 2007 8:13pm | Edited 8:37pm
Neo1001,

I'm curious what broker are you using to get the postive results. I'm currently using Interbankfx and all of my hedged positions have a overall negative affect in swap?

I use hedging on a daily basis, but I'm loosing swap $'s daily.

Thanks for your insight and posting your thought on Forexfactory. I'm always open to new ideas. Especially if they can make profit.

yezbick
  • #50
  • Apr 17, 2007 1:17am Apr 17, 2007 1:17am
Hi i like your system, and i agree on the theory that you have in affect created a loop effectively 100% hedged but not 100% correlated. Unless a country decides to print more money the system should remain quite stable. Some questions below -

1. - I guess you Equalize all lots sizes?

2. - What lot size is the ratio per $1000 in your account (eg 1 mini per 1000 in the account) ? to acheive 10% a month.

3. You mention you set 1 pip SL then you say you shouldn't close trades, im confused? do you have a seperate system running taking profit?

4. - Can i see the setup for the 10 hedge system?

5. - You also said you do i tenth at a time. i guess so you spread out the trades through the different stages of draw down/ profit.

6. - How and when do you compound, weekly monthly? If you have 10 sets running i would guess you could close out one that is break even and open a new one with the bigger lots running.

7. - If you do take a profit on trades can you take profit on both sides. meaning you can come into the market many times taking profit without burying your self in the corner?

Thanks
  • #51
  • Apr 17, 2007 1:24am Apr 17, 2007 1:24am
Quoting BGazzoni
Hi everybody.

Nice thread and nice system neo. I'm glad to see that we have trader who realy understand about hedge working out together to make a nice system!

Hey Neo don't get me wrong but I have a little question and i won't make a thread just for this question =)... Here it goes...

What if we Buy EUR/USD and Buy USD/CHF looking for $2,05 swap at 1 standard lot each?

Cause U/Ch and E/U is extremely correlated about 93% 1 year trailling...

And dollar should go up at sometime since U/Ch have a daily range greater than E/U we will be in nice profit at sometime...

I'm just want to know if you guys think that is good enought for a hedge

Thanks for any reply and lets keep this thread rolling up

Regards
Hello:

Thank you for you kind comments.
The reason why I am doing a short with USD/CHF is because that we are shorting the CHF/JPY. If we were to use the EUR/JPY, then we have to go long on the EUR/USD, which will give you 2 negative swap on a daily basis, both the EUR/JPY and EUR/USD pair. Remember, as a basic definition of hedge, we are trying to cancel out our positions and gaining a positive swap.
Also the fact that shorting the EUR/JPY will definitely cost you a higher swap.
Let me illustrate:

Original Scenario

1 Lot Long GBP/JPY $23.87
1 Lot Shor CHF/JPY -$ 3.34
1 Lot Shor USD/CHF -$10.46
1 Lot Shor GBP/USD $ 0.29

Total Swap per day = $10.36 (For today) Rates varies.

Alternate Scenario

1 Lot Long GBP/JPY $23.87
1 Lot Shor EUR/JPY -$12.85
1 Lot Long EUR/USD -$6.66
1 Lot Shor GBP/USD $ 0.29

Total Swap per day = $4.66
  • #52
  • Apr 17, 2007 1:27am Apr 17, 2007 1:27am
Quoting yezbick
Neo1001,

I'm curious what broker are you using to get the postive results. I'm currently using Interbankfx and all of my hedged positions have a overall negative affect in swap?

I use hedging on a daily basis, but I'm loosing swap $'s daily.

Thanks for your insight and posting your thought on Forexfactory. I'm always open to new ideas. Especially if they can make profit.

yezbick

I use FXDD and I think even FXLQ do pay good swap.
I heard someone talking about Oanda being good at paying swap, but they have a limit now on how much swap will be paid or something like that. So far my experience is with FXDD and they are pretty decent. I won't go out and endorse them, but I am just telling you my experience.
  • #53
  • Apr 17, 2007 1:48am Apr 17, 2007 1:48am
Quoting mgtoeasy
Hi i like your system, and i agree on the theory that you have in affect created a loop effectively 100% hedged but not 100% correlated. Unless a country decides to print more money the system should remain quite stable. Some questions below -

1. - I guess you Equalize all lots sizes?

2. - What lot size is the ratio per $1000 in your account (eg 1 mini per 1000 in the account) ? to acheive 10% a month.

3. You mention you set 1 pip SL then you say you shouldn't close trades, im confused? do you have a seperate system running taking profit?

4. - Can i see the setup for the 10 hedge system?

5. - You also said you do i tenth at a time. i guess so you spread out the trades through the different stages of draw down/ profit.

6. - How and when do you compound, weekly monthly? If you have 10 sets running i would guess you could close out one that is break even and open a new one with the bigger lots running.

7. - If you do take a profit on trades can you take profit on both sides. meaning you can come into the market many times taking profit without burying your self in the corner?

Thanks
WOW, thats a lot of questions to answer. I will do my best to answer them.


1. I trade one standard lot per currency pair per SET. That means when I enter a trade I enter 4 orders, with 1 LONG GBP/JPY and 3 Short (CHF/JPY, USD/CHF, and GBP/USD)

2. I have a 200:1 leveraged account. The total margin is about $2800. However, I will not get a margin call unless I am at 10% equity, which means that for $2800 margin, my total account equity will need to fall below $280 to be get margin called. I would recommend that you get at least $3500 in your account to do this to achieve 10% monthly, but it will be much safer to have at least $5000 to start this set.

3. Since this hedge is dependent on GBP/JPY, when you are in profit of 100 PIPS or more, you need to place a SL on GBP/JPY at 1 point above your entry. This is primarily to prevent any market crash or overreaction as seen recently. You only have to place this on the GBP/JPY pair, and once it is stopped out, all your other pairs should be positive or close to be positive. Then you can close them manually. This is not a separate system, but the same system but with a different exit strategy.

4. Yes, I will show them in a different thread once I have done forward testing of them.

5. The idea is to enter 1/10th of your position and take 10 days to enter them all. So that each day you might enter the market at different price and spread out your risk. Just make sure that every GBP/JPY order when they reach 100PIP of profit you do lock in that 1 PIP so if the market comes back, you can then close the remaining 3 pairs that you entered along with that order. Do this as the market stops your GBP/JPY.

6. Actually you do not close any sets. You just keep on adding to it. Lets say that you will set aside $3500 for each FULL LOT SETS. So everytime you have a $350 of profit, then you can do a mini-set. Just keep on adding to your position and set that 1 PIP stop. Also DO NOT close positions when break even or little profit, HEDGE is a different beast all together. You are not there to scalp the market to quick profit. You are there to stay in the market and make swap daily. All of your margin and equity should be used to handle the movement. The only reason you would close a hedge is when you are going on vacation, there is a major news that can affect your hedge tremendously, and/or you just couldn't resist the temptation of the huge money your are making and you want to cash out.
Also remember when you add a new position, you gotta pay the broker spread. SO don't close your positions so you can consolidate a new bigger position, you will end up paying double spread.

7. It is possible, but the market is unpredictable. Hedge will give you the illusion that you are making money on one pair, but once you close the profitable pair, the market might keep on going, so the loser pairs becomes bigger, and you will eventually lose money. Even if you are able to time your exit right and make money on both sides, all it takes is one time for you to guess wrong, and the losing pairs will eat you alive. So don't do it, open as a set, and close as a set. Or don't hedge.

neo
  • #54
  • Apr 17, 2007 3:41am Apr 17, 2007 3:41am
Hi Neo,

Quote
So everytime you have a $350 of profit,then you can do a mini-set.
If you don't close your trades, where does the $350 profit come from?

Thanks!
Ann
  • #55
  • Apr 17, 2007 4:44am Apr 17, 2007 4:44am
Quoting 34107
Hi Neo,

If you don't close your trades, where does the $350 profit come from?

Thanks!
Ann
From interest you recived.
  • #56
  • Apr 17, 2007 4:55am Apr 17, 2007 4:55am
Thanks for that neo. that cleared up most of it. Still unsure of the GBPJPY SL.

It worries me that you have to protect it. I gather you have so much margin used that you have to be careful. Can you let me know is it 100 pips account profit or just 100 pips profit on the GBPJPY pair. before you implement the SL.

If it is the GBPJPY then what if it never reaches a profit? Market drops for a long trend just after opening the hedge trades?

Be great to know the boundaries of the Hedge too. How far each way have you seen it go?

One more thing opening new trades continuously can't be good long term can you have a read below and let me know what you think.

Open 10 or even 20 sets over 10 or 20 days. When you wish to add money to your account (eg fund) or compound swap. Then you can close out the nearest to break even and replace the set with a new set higher in Lot size then for get it. Accounts with FXDD go down to micro so why not use it. This will mean you get hit with an extra spread but a very low one (1 20th infact).

You then know you have 20 trades no less no more. I can't see the longevity in a system that continues to add trades (very messy)

Let me know your thoughts.
  • #57
  • Apr 17, 2007 5:11am Apr 17, 2007 5:11am
Neo just a thought but i have an EA (will need some alterations) but you can dial in a negative % of equity (eg -50%) and it will copy the opposing trades effectively locking the account.

FXDD has a Zero margin policy ( not a margin offset policy) so you get all your margin back.

Let me know the side effects of this as your account is locked but you could turn a negative into a positive and ride the move away for profit?? Or you could just wait till it returns and close it at break even ??
  • #58
  • Apr 17, 2007 5:49am Apr 17, 2007 5:49am
This hedge strategy is GBP/JPY weighted; it means that when GJ goes up you have profit and when it goes down you lose, that is why you should place a stop on GJ if you get a 100 pip profit and therefore the hedge should be entered at GJ dips, in the hope of a rally to be able to place the protective stop.
Regards
  • #59
  • Apr 17, 2007 10:32am Apr 17, 2007 10:32am
what is this 1 pip stop you are talking about?
  • #60
  • Apr 17, 2007 12:23pm Apr 17, 2007 12:23pm
Quoting 34107
Hi Neo,

If you don't close your trades, where does the $350 profit come from?

Thanks!
Ann

You can see your Equity and your Buying Power Increase.
Instead of seeing the account balance increase, your equity will be actually greater than your balance, and when you enter into more trades, it will deduct from your equity as margin, not account balance.
2 traders viewing now