Disliked{quote} The arb was a winner, only aimed at b/e in such case but my slow fingers took a while to press 'x' so next thing I know it was a winner. It wasn't pure arb though, it was the one retailers get, the risk one. I saw in investopedia http://www.investopedia.com/video/play/arbitrage/ ah but thanks for the explanation, it does seem like I put loads more risk, and should of really just cut loss. :-)and I was thinking that to be the answer, but was curious then to see where creativity led me when the option presented itself.In...Ignored
2. and i am quite sure you not understand what the term hedging also.
is not seems, is fact you created doubled risk with positions trading against one another.
that something in you, thats what i was most worried about.
be sure, that is definately scorpion.
tame before gets sting.
regards
Just so you get proper ly educated.
you can hedge risk that is natural risk.
you cannot hedge a risk that you create with risk position.
Hedging is only for peeps who have natural risk.
created risk cannot be hedged.
created risk is called speculation.
When you have long and short positions in 1 instrument , effectively you have created an unrealised book loss.
when you have a long and short in 2 complimentary instruments, you have same.
There is no hedge, is 2 instances of speculation with close to no opportunity turn a profit.