Buying and selling the same currency

G

ghost typer

Hello,

I am new to FX and was wondering if the serious currencies brokers would allow you to enter a buy and a sell position in the same currency, may it from two accounts at the same firm (at the same time or not)
Of course, FXCM proposes this kind of hedging, but I am not certainly tempted by a bucket shop.

Thank you
 
Quote from ghost typer:

Hello,

I am new to FX and was wondering if the serious currencies brokers would allow you to enter a buy and a sell position in the same currency, may it from two accounts at the same firm (at the same time or not)
Of course, FXCM proposes this kind of hedging, but I am not certainly tempted by a bucket shop.

Thank you
More...

FXSol has had a hedge facility, within the same account, for some time. Otherwise look for brokers who permit subaccounts. This means you see both accounts with one log in. Simply go short in one and long in the other.

Are you doing your own correlation calculations or are you relying on someone else (eg FXCM)?

Is this a prelude to a carry trade?

Regards
Morty
 
Thank you very much, Morty :)

I know that my question sounded like the one's of a newbie, but I looked at the legal restrictions/agreements at my current brokers (IB and Oanda) and one hint I've found was that IB would maybe not allow 2 way trades. But there isn't anywhere a mention of forbidding such strategy on the FX market.

So yippie :D :D

No, no, my main purpose won't be searching the best interest rate(s), but I am more seeking the good channeling opportunities.

Thanks again,:D

Regards,

Dave
 
If Oanda is one of your current dealers, why aren't you already doing just that, with sub-accounts? They are very suitable for "hedging", whether as part of channel trading or for other reasons.

IB: correct, can't hedge in a single account. The platform design doesn't allow it anyway.

Other possibilities, besides already mentioned FXSol (and a few other shops): any dealer with MetaTrader4 platform allows hedging in a single account, i.e., putting on any number of independently managed long and short trades in a given currency pair. FXDD would be one example.
 
Well, Oanda looks certainly like a serious broker, but they are charging several hundreds of $ for the API version. But their Java platform has the main inconvenient, that you can't place stop orders and when a currency is jumping more than 50 pips in less than 5 seconds, it would be better to have more to say than : "oopsie"

The point is not to be just cheap regarding the API fees at Oanda, since the spread at Oanda for the EUR/USD is 1,5, at IB around 1 on Ideal Pro, (I've heard that Questrade is charging 1 pip), but at others firms, the spread is in general at 3.

It's all about costs, costs, costs


Good trading to all of you
 
It's very simple, in principle you have great chances not to have losses, ever, if you hold long enough and if you have enough cash to do so.
As example, if the EUR climbs again to 1.36, it won't stay up forever. With a major currency, you won't have the displeasure to see a position with a - 20% or -30% from one day to another. But the problem with the Forex is the high leverage and the greed combined to it.

Regards,

Dave
 
Quote from virgin:

Please, tell me what's the use of this "hedge" trading ?!
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Yes, it is a head scratcher.

Maybe it's like this coin toss: "Heads, I win, Tails, I win."
 
Quote from virgin:

so there is no advantage , it's just a psychological thing , right :D
More...

I can't say. I've never done it. I've also not gone over Niagra Falls in a barrel. Probably some pyschological effects in that.
 
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