Hedging in Forex

[antiseptic]

Let's say I take a short position in XXX/YYY but then it goes against me, but it's still within risk tolerance but I'd rather hedge against it somehow. How do I do this?

Thanks.

 

[radex78]

I thimkl hedfing is open two order with oposite order, buy and sell on same pair, I am often fail using this strategy and only causing bigger loss, so now I like with stop loss than hedge position

 

[ETcallhome]

depends on the pair, for instance usd.jpy is moving against you. Is jpy moving against everything or just the dollar? What's the dollar doing?
I would not change in the middle of a losing trade. This should all be thought out before hand.
But I never trade just one pair, I like to spread it out against the other 5 majors.

 

[radex78]

depends on the pair, for instance usd.jpy is moving against you. Is jpy moving against everything or just the dollar? What's the dollar doing?
I would not change in the middle of a losing trade. This should all be thought out before hand.
But I never trade just one pair, I like to spread it out against the other 5 majors.

Often if I am open on multiple pair only will making loss in my trades, eventually, still trying to get formula trade on multiple pair, and not usually only trade on one pair, so if fail still in consideration

 

[doggyfx]

Often if I am open on multiple pair only will making loss in my trades, eventually, still trying to get formula trade on multiple pair, and not usually only trade on one pair, so if fail still in consideration

I hedging technique when trading with my current broker Hotforex, but what about you?? Do you know or can share any profitable hedging strategies (maybe in private)

 

[Martinghoul]

If it goes against you, but is within tolerance, why would you want to hedge? If you still want to hedge, the best thing to do is to reduce the size of your position.

 

[ETcallhome]

just be sure you reduce position before you put it on

once you put it on it is too late to come up with anything new

this should all be part of your plan so you know what to do when anything happens

But as far as spreading the risk, for instance if you want to get long the eur you may not want to put all eggs in the eur.usd basket for fear of a rate hike. Perhaps short it against everything as the opportunity presents itself.

 

[radex78]

Hedging strategy will giving profit if trader can determine bet timing to open lock hegding on right position, but if trader in bad decision hence will making loss will more wider, if likely not suitable with this strategy might fixed stop loss is better than hedging

 

[Sig]

Hedging strategy will giving profit if trader can determine bet timing to open lock hegding on right position, but if trader in bad decision hence will making loss will more wider, if likely not suitable with this strategy might fixed stop loss is better than hedging

Given that simultaneously holding two equal and opposite forex positions is never cheaper than simply closing your initial open position, you'll never end up better off "hedging" vice any other strategy! If you want to pay double commissions to your bucket shop for no reason, that's your choice, just be clear that paying extra commission is the only thing you're accomplishing.

 

[radex78]

Given that simultaneously holding two equal and opposite forex positions is never cheaper than simply closing your initial open position, you'll never end up better off "hedging" vice any other strategy! If you want to pay double commissions to your bucket shop for no reason, that's your choice, just be clear that paying extra commission is the only thing you're accomplishing.

Yes open two order also will charged by spread fee and this commission will giving more benefit for broker I think, as I know hedging position is only to prevent from more loss because order against the trend, and with open oposite order, where ever price move floating loss remain same.