Recent content by clemt

I have read "Reminiscences of a Stock Operator" (ISBN: 0471770884), but I am wondering if anyone here have read "Reminiscences of a Stock Operator Illustrated" (ISBN: 0471678767). What's the difference between the two?

Sounds like you're referring to arbitraging. To do this successfully, you'll need to find one broker price is lagging the other with a difference in prices of more than the total spread incurred. For example: Broker1 has Euro bid/ask as 1.2345/46 Broker2 has Euro bid/ask as 1.2349/50 So...

You're right, long EUR/USD and short GBP/USD would essentially give you a long with EUR/GBP. That's why I called it a "partial-hedge" (maybe that's a misleading term). The reason I said that is because EUR/USD and GBP/USD are generally correlated to each other by a factor approximately between...

The use of hedge can be (1) For protection of your capital. I heard some traders don't use stop loss, instead they hedge their losing positions. I personally don't like the idea. It's best to cut your loses quickly and move on rather than hedge and pay extra spread for a losing position...