4xmeter Posted May 2, 2009 Report 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
lerxst Posted May 2, 2009 Report Posted May 2, 2009 Re: Hedging is out I think this only applies to NFA regulated, U.S. firms. Quote
4xmeter Posted May 2, 2009 Author Report Posted May 2, 2009 Re: Hedging is out You are probabily right! :ugeek: Quote
lerxst Posted May 2, 2009 Report 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
William1713006271 Posted May 3, 2009 Report Posted May 3, 2009 Re: Hedging is out Too bad. Hedging has big possibilities. Regards, Quote Ore no Shinka Hikari yo Hayai. Zen Uchi o Nani no Mono Ore no Shinka Chuito Kore Nai. Ten no Michi yo Iki. Subete o Sukosadoru Otoko.
4xmeter Posted May 3, 2009 Author Report 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
adky Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out Some broker don't allow hedging. I don't know why. Quote
craver Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out FXDD also email me on that ....... Quote
andrewte Posted July 13, 2009 Report 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
kangweigf21 Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out Inspiring indeed, thx Quote
icemaneu Posted July 13, 2009 Report 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
tradewin9 Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out bad news for those who used to hedge :(( Quote
LiukK Posted July 13, 2009 Report 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
masmin Posted July 13, 2009 Report 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
zhigool Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out You guys think that other bookers(not us) will follow these rules? Quote
zhigool Posted July 13, 2009 Report 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
arcian Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out you can use non-US brokers :) Quote
sutanto Posted July 13, 2009 Report 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
joseromano007 Posted July 13, 2009 Report 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
mopips Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out Already moved all my forex accounts away from NFA regulated brokers. Quote
royakma Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out just use a russia broker, more easily Quote
matforex Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out use fxopen ..dont support USA brokers useless regulation Quote
swift Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out what of brocotrader, anyone Quote
Benoit Plourde Posted July 13, 2009 Report 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
jazzysmith Posted July 13, 2009 Report Posted July 13, 2009 Re: Hedging is out What can we be doing about hedging? ;)) Quote
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