4xmeter Posted May 2, 2009 Report Share Posted May 2, 2009 Due to explosion in number of traders involved in forex trading, lot of brokers started offering feature of hedging in their trading platform. Hedging is nothing but a feature in which you can have two trades opened on same currency pair in opposite direction. So, you can have a short trade on GBP/USD as well as long trade on GBP/USD open at the same time. A lot of traders wonder what is the advantage of doing this because the profits of one trade will be cancelled by the loss in the other. This is true! But this is advantageous for certain set of traders as they use the hedging technique to identify trend in the market. Imagine you have two trades open using hedging. You can keep them open as long as you want since you know that lose from one trade will be componsated by the profit in other. Once you find the direction of the trend, you can close the losing trade and keep the winning going. ==> So, the NFA (National Futures Association) decided that they need to stop this practice! And they campe with a rule which will disallow hedging practice effective 15-May-09. So, all the traders who were using the hedging technique will now have to look for some other forex trading system to make money from forex market. Quote Link to comment Share on other sites More sharing options...
lerxst Posted May 2, 2009 Report Share Posted May 2, 2009 Re: Hedging is out I think this only applies to NFA regulated, U.S. firms. Quote Link to comment Share on other sites More sharing options...
4xmeter Posted May 2, 2009 Author Report Share Posted May 2, 2009 Re: Hedging is out You are probabily right! :ugeek: Quote Link to comment Share on other sites More sharing options...
lerxst Posted May 2, 2009 Report Share Posted May 2, 2009 Re: Hedging is out You are probabily right! :ugeek: Speaking of brokers, any recommendations for good non-U.S. forex brokers? Thanks Quote Link to comment Share on other sites More sharing options...
William1713006271 Posted May 3, 2009 Report Share Posted May 3, 2009 Re: Hedging is out Too bad. Hedging has big possibilities. Regards, Quote Link to comment Share on other sites More sharing options...
4xmeter Posted May 3, 2009 Author Report Share Posted May 3, 2009 Re: Hedging is out Hi William! I would be watching how this particular ruling affect the News price movement. Hoping for the better.! Quote Link to comment Share on other sites More sharing options...
adky Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out Some broker don't allow hedging. I don't know why. Quote Link to comment Share on other sites More sharing options...
craver Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out FXDD also email me on that ....... Quote Link to comment Share on other sites More sharing options...
andrewte Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out Yep, FXDD emailed me too. For UK ones I use Alpari UK a,d FXCM is in the process of switching to FXCM UK. Quote Link to comment Share on other sites More sharing options...
kangweigf21 Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out Inspiring indeed, thx Quote Link to comment Share on other sites More sharing options...
icemaneu Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out I am using Oanda, so no issue to me cos Oanda don't allow hedging from the beginning. Quote Link to comment Share on other sites More sharing options...
tradewin9 Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out bad news for those who used to hedge :(( Quote Link to comment Share on other sites More sharing options...
LiukK Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out excuse me but..if I want still to use hedging.. couldn't I simply open 2 different account and make a buy in one and a sell on the same pair in the other one? :P Quote Link to comment Share on other sites More sharing options...
masmin Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out This is true! But this is advantageous for certain set of traders as they use the hedging technique to identify trend in the market. Imagine you have two trades open using hedging. You can keep them open as long as you want since you know that lose from one trade will be componsated by the profit in other. Once you find the direction of the trend, you can close the losing trade and keep the winning going. :-? to identify an existing trend I don't need to hedge - just my opinion. I can't figure out any advantages of hedging on the same pair. can someone give me an example? Quote Link to comment Share on other sites More sharing options...
zhigool Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out You guys think that other bookers(not us) will follow these rules? Quote Link to comment Share on other sites More sharing options...
zhigool Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out And one more thing from August 1st not even stop loss or limit orders,I guess US brokers are moving from MT Quote Link to comment Share on other sites More sharing options...
arcian Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out you can use non-US brokers :) Quote Link to comment Share on other sites More sharing options...
sutanto Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out be careful with your hedge position,sometimes it is difficult to unlock it.better hedge with different currency although it takes times to make it pofit or breakeven. Quote Link to comment Share on other sites More sharing options...
joseromano007 Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out my broker (forex.com) still allow hedging, but must change the acc in forex.com uk Quote Link to comment Share on other sites More sharing options...
mopips Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out Already moved all my forex accounts away from NFA regulated brokers. Quote Link to comment Share on other sites More sharing options...
royakma Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out just use a russia broker, more easily Quote Link to comment Share on other sites More sharing options...
matforex Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out use fxopen ..dont support USA brokers useless regulation Quote Link to comment Share on other sites More sharing options...
swift Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out what of brocotrader, anyone Quote Link to comment Share on other sites More sharing options...
Benoit Plourde Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out hi all i have closed my account in usa territory (ibfx) and i open in russia broker instatrader but the futur is uncertainly lol Quote Link to comment Share on other sites More sharing options...
jazzysmith Posted July 13, 2009 Report Share Posted July 13, 2009 Re: Hedging is out What can we be doing about hedging? ;)) Quote Link to comment Share on other sites More sharing options...
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