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  • #825,781
  • Aug 14, 2013 10:01pm Aug 14, 2013 10:01pm
Quoting ffleo
{quote} you hedge with a different instrument. or even better hedge with options.
oooooh synthetics
When the facts change I change my mind, what do you do sir
  • #825,782
  • Aug 14, 2013 10:03pm Aug 14, 2013 10:03pm
Quoting ffleo
{quote} you hedge with a different instrument. or even better hedge with options.
Its not about restricting loss or concealing loss or reducing rate of loss............ none of the things many people think about hedging. I am talking something beyond that, .................technical utility of hedging.
The Thief of Wall Street
  • #825,783
  • Aug 14, 2013 10:04pm Aug 14, 2013 10:04pm
Quoting ffleo
{quote} you can take the pot to a mountain high level, it has 3 gallon water in it. you can also take the pot to a subway and leave it on a train seat, it still has 3 gallon water in it.
let say you have long term long currently +100 pip & @ resistant , you can take short at resistant make few pip without touching your long , it not wise to trade against losing trade unless your s/l is huge (100+ )
Mohan
  • #825,784
  • Aug 14, 2013 10:04pm Aug 14, 2013 10:04pm
What is hedging
  • #825,785
  • Aug 14, 2013 10:04pm Aug 14, 2013 10:04pm
Quoting ffleo
{quote} you hedge with a different instrument. or even better hedge with options.
you long euro 5 lots and short euro 3 lots. i just long euro 2 lots. what is the difference? there is no difference.
ignore wackos and psychos, including myself. But I can't add myself to iggy
  • #825,786
  • Aug 14, 2013 10:06pm Aug 14, 2013 10:06pm
Quoting Chicky
{quote} You are 100% correct if one is looking at "Hedging" (Contra-Trade) in a superficial way. There is a lot more to this tactic but many never tried to explore because to them contra-trades are nothing more than postponing loss recognition. Contra-trading is far more deeper a subject than many believe.

just plain old honest.
an exception would be made with a international company, that has contracts at x amount per widget. to ensure that x remained constant. they would hedge to keep x = if the "paid in currency" dropped. this would keep the value of the widget a constant. in case the forex market changed over a contract that may span years.
Attached Image (click to enlarge)
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those who can, do. those who cant, talk about those who can
  • #825,787
  • Aug 14, 2013 10:12pm Aug 14, 2013 10:12pm
Quoting mohan76
{quote} let say you have long term long currently +100 pip & @ resistant , you can take short at resistant make few pip without touching your long , it not wise to trade against losing trade unless your s/l is huge (100+ )
just close part of you long position, and load it back later.
ignore wackos and psychos, including myself. But I can't add myself to iggy
  • #825,788
  • Aug 14, 2013 10:14pm Aug 14, 2013 10:14pm
Quoting Ken A
What is hedging
Many refer to Contra-trading as Hedging. Not technically correct but can be debated.
The Thief of Wall Street
  • #825,789
  • Aug 14, 2013 10:16pm Aug 14, 2013 10:16pm
Quoting Chicky
{quote} Many refer to Contra-trading as Hedging. Not technically correct but can be debated.
What is Zindabaad
  • #825,790
  • Aug 14, 2013 10:18pm Aug 14, 2013 10:18pm
I don't know what else to do with you guys.. I tried along the way to point your attention to things that are different from what you read or hear, I gave you step by step plans and trades (lately), entries, exits etc. with detailed reasons... you put them on the chart and you still don't believe them.. I've never said drop what you're doing and do this... just.. maybe.. maybe look outside of the box and see if there's anything there for you... Remember this.. Do what everybody does, and you'll end up just like everybody else...
  • #825,791
  • Aug 14, 2013 10:20pm Aug 14, 2013 10:20pm
short, se you all later.
  • #825,792
  • Aug 14, 2013 10:21pm Aug 14, 2013 10:21pm
Quoting Ken A
{quote} What is Zindabaad
never ending story

edit : ops read wrongly
Mohan
  • #825,793
  • Aug 14, 2013 10:22pm Aug 14, 2013 10:22pm
Quoting gatorinla
{quote} just plain old honest. an exception would be made with a international company, that has contracts at x amount per widget. to ensure that x remained constant. they would hedge to keep x = if the "paid in currency" dropped. this would keep the value of the widget a constant. in case the forex market changed over a contract that may span years. {image}
1. That's hedging. A risk aversion tool to keep investments/assets/liabilities immune from change in currency values.

Use of forex "Hedging"
1. Money Laundring
2. Tax Avoidance/Evasion
3. By-pass foreign exchange restriction
4. By-pass investment income repatriation restrictions
5. Logging trade history
6. Cycle trading
The Thief of Wall Street
  • #825,794
  • Aug 14, 2013 10:24pm Aug 14, 2013 10:24pm
Quoting mohan76
{quote} never ending story
Oh scaly
  • #825,795
  • Aug 14, 2013 10:26pm Aug 14, 2013 10:26pm
Quoting Chicky
{quote} 1. That's hedging. A risk aversion tool to keep investments/assets/liabilities immune from change in currency values. Use of forex "Hedging" 1. Money Laundring 2. Tax Avoidance/Evasion 3. By-pass foreign exchange restriction 4. By-pass investment income repatriation restrictions 5. Logging trade history 6. Cycle trading

in the spot market, cloggie and i were on the same page.
those who can, do. those who cant, talk about those who can
  • #825,796
  • Aug 14, 2013 10:27pm Aug 14, 2013 10:27pm
The only hedging I know

https://encrypted-tbn2.gstatic.com/i...2Zn5dGtZwkHrEQ
  • #825,797
  • Aug 14, 2013 10:27pm Aug 14, 2013 10:27pm
Quoting Chicky
{quote} 1. That's hedging. A risk aversion tool to keep investments/assets/liabilities immune from change in currency values. Use of forex "Hedging" 1. Money Laundring 2. Tax Avoidance/Evasion 3. By-pass foreign exchange restriction 4. By-pass investment income repatriation restrictions 5. Logging trade history 6. Cycle trading
One more use:

Wayne Jacko: I go short
Wayne Jacko's partner: I go long
Both of them: One of us will be famous and the other will remain unknown.
The Thief of Wall Street
  • #825,798
  • Aug 14, 2013 10:28pm Aug 14, 2013 10:28pm
Quoting Chicky
{quote} Its not about restricting loss or concealing loss or reducing rate of loss............ none of the things many people think about hedging. I am talking something beyond that, .................technical utility of hedging.
In the us a retail trader cannot hedge a the same Forex instrument. I am biased bear on the euro, but I can usually still make money when it goes up by staying out of it, and going with the Aussie. (not always, but usually). tonight. the Euro has been in flight (return to mean), But the Aussie has hit my target. When the Euro turns around (some day, my love will come!), I will switch back to it. Keep your positions small, your stoplosses long (Think how long can you carry this position before you HAVE to close it) and use sell stops and buy stops.

If your careful with your mix, this can become a profitable part of your income stream. I love waking up to the sound of Ka-Ching!

I also love the self -portrait you posted earlier....
  • #825,799
  • Aug 14, 2013 10:29pm Aug 14, 2013 10:29pm
Quoting ffleo
{quote} you long euro 5 lots and short euro 3 lots. i just long euro 2 lots. what is the difference? there is no difference.
there is one situation i can think of the described hedging is in futures market. you longed one contract of euro. you either close the full contract or leave it open. if you leave it open you cannot go to sleep. so you want to close part of it, but you cannot because you have to close the full contract. the good thing is there are micro contracts out there. so you take 5 micro contracts short and you go to sleep. (one full contract = 10 micro contracts).
ignore wackos and psychos, including myself. But I can't add myself to iggy
  • #825,800
  • Aug 14, 2013 10:29pm Aug 14, 2013 10:29pm
Long hit TP.
Short @3297
Together We Stand !
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