How can I exit a hedge trade? Help, please!

[oxiron]

Dear Community,

 

I got caught very badly in a hedge trade, and I don't know what is the best way to exit it.

 

Long ago, I opened a short trade at 1.2130 and (in a moment of panic to prevent margin call) a long trade at 1.3520 in AUDNZD. Current price is around 1.2947.

 

So if I close the hedge, the loss is 1390 pips. Ouch!

 

While I think it is possible that price goes down to 1.2130, I hardly believe it will ever go up again to 1.3520 (record high).

 

Any ideas on how to exit? I assume that I will have to bear some losses, but I wonder if there is a technique or idea that may help to reduce them.

 

Thanks in advance for your help!

[chrisbenjy]

Maybe try to find some points that you think price will reverse/retrace and make a new swing high/low and trade it with an increased lot size. Your going to need to be very accurate or else your going to bury yourself in a bigger hole. Try elliot wave to find accurate points. Each trade that wins, close part of your original hedge trade that equals the amount you gained in profit from the swing trade.

 

I wouldn't recommend doing any of this, but it is an option. The real solution to the problem was to monitor you original exposure so that this situation never occurs.

[iwjw]

take your loss and learn from it

as long as you are trying to find a solution to get out of this mess you've got no chance to restart your trading

you've made a mistake....accept it and demo until you've found your way to success

[⭐ mammut]

take your loss and learn from it

as long as you are trying to find a solution to get out of this mess you've got no chance to restart your trading

you've made a mistake....accept it and demo until you've found your way to success

 

I agree here ...

 

a hedge is the same as closing original positions ... you already took a loss ... this is just psychological ... you think you didn't take the loss since you have

two positions on the screen ... yet your equity shows a loss that will stay there and add up with swap

 

anyways since you opened a hedge instead of closing the loosing position you already paid a spread on the hedge so at least try to squeze a few pips from this trade ...

 

eg look for some place where you'd normally place a trade and close one leg of the hedge as though you'd be placing a new trade ... to use the spread you already paid for by opening a hedge

[richborland]

take your loss and learn from it

as long as you are trying to find a solution to get out of this mess you've got no chance to restart your trading

you've made a mistake....accept it and demo until you've found your way to success

 

totally agree on that one,

unfortunately i dont think that there is anything you can do to save that one

[oxiron]

Thanks everyone for your kind advise.

 

I pretty much suppossed that I screwed it up when I hedged and didn't close the second trade in time to minimise losses. Another hard and costly lesson learned (will one ever learn?).

[Emersun]

Speculate dear speculate is t he best option to do if you want to go for it selling .

Use it as a weapon as you have it for a long time .

http://www.countryclubatvalleyview.com/

Edited February 5, 2011 by Emersun

[DooMGuarD]

it is complicated...

the best seriates to assume a less loss and to try to begin again...

but I think that the best way is to choose a method of long term and to apply it to one of the positions

[DooMGuarD]

completing...

 

if it will not get on well in the short term ... change his equal strategy I lengthen term..