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What happens in this scenario...

  • #1
  • First Post: Dec 14, 2010 9:12am Dec 14, 2010 9:12am
... you go short on a pair for 2.0 lots... that's the max lots you can trade... then you hedge i.e. go 2.0 lots long... then you go 1.0 lot short(the system lets you as the other two trades break even)... what happens when your 2.0 lots long trade hits its TP target? Shall I assume that the system will not let your other two trades active (as that will be using 3 lots)?! will it close one of the two? which one?

- thanks
  • #2
  • Dec 14, 2010 9:17am Dec 14, 2010 9:17am
it just hit the TP.. it didnot close any of the other position

Quoting nemesis
... you go short on a pair for 2.0 lots... that's the max lots you can trade... then you hedge i.e. go 2.0 lots long... then you go 1.0 lot short(the system lets you as the other two trades break even)... what happens when your 2.0 lots long trade hits its TP target? Shall I assume that the system will not let your other two trades active (as that will be using 3 lots)?! will it close one of the two? which one?

- thanks
  • #3
  • Dec 14, 2010 12:19pm Dec 14, 2010 12:19pm
Hedging makes no sense. You are just using your margin. Your net position is still zero.
  • #4
  • Dec 15, 2010 12:57am Dec 15, 2010 12:57am
Quoting nemesis
... you go short on a pair for 2.0 lots... that's the max lots you can trade... then you hedge i.e. go 2.0 lots long... then you go 1.0 lot short(the system lets you as the other two trades break even)... what happens when your 2.0 lots long trade hits its TP target? Shall I assume that the system will not let your other two trades active (as that will be using 3 lots)?! will it close one of the two? which one?

- thanks
If 2 lots is your maximum then you have used up your margin. You would not be able to place any more trades.
Gone to a better place
  • #5
  • Last Post: Dec 15, 2010 5:35am Dec 15, 2010 5:35am
You should make sure if your broker follow the FIFO rules or not
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