Short 1.2014
tp 1.2005
sl 1.2026
Speculation converts one man's capital into another man's income
- #7,242
- May 29, 2012 11:07am May 29, 2012 11:07am
I loaded again between 1.2011 and 1.2014...
But I have some bullets left if it tests the peg
Now I'll wait and enjoy the swaps
Speculation converts one man's capital into another man's income
i have eurchf buy orders with average 1.2098... When i now hedge this orders with the same lotsize with sell orders at the same broker and all buy and sellorders without sl and tp my risk is normally reduced on a maximum loose of the current loosing amount if the 1.20 breaks...but also when price moves up to 1.21..the loose will be the same....my idea is to hold the loose stable and then reduce the hedged position...when i have some other winning trades in other pairs...what do you guys think...sounds logical or did i forget any risk?
i just dont...
IMO headging on this pair is pointless - usualy you hedge, when for example you have risky possition on volatile market, and you will be unable to close it manualy if something happens and still want to hold it. Here, volatility is minimal, and so are the chance, for your short to work against the famous peg. I would simply wait patiently, close position if loses are to big, and move to another pair to get money back, or last do the moment, when loses will tranfer into gains.
The decision is your to made.
Good luck mate!
- #7,258
- May 30, 2012 2:42am May 30, 2012 2:42am
Tricky thing to do. First of all, with your current loses, you need to set a stategy of this headge - do you want fully headged possition (sell the same amount you have in buy order) or partialy reduce loses (sell less than you bought) or higly risky, reducing your loses (for example sell twice as many as you bought- the trick here is to count the place, where gains from short will be equal loses from long). You need also to take into consideration swaps if your broker provides them (probably one of them, long or short, will be negative, which bigger...