Newbie question about hedging
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Thread: Newbie question about hedging

  1. #1

    Newbie question about hedging

    Yes, this is a newby question. Please be kind. I am sure someone has asked this.
    How about buying a short and long of a ranging pair. After some time (or pips), close the profitable place, bank the money and open exactly the same place. When and if it retraces, do the same. What's the disadvantage to this? Please be kind.

  2. #2
    Hedging is not for newbie. It's a really advanced thing. When I was new, I also thought like you. However, by doing so in the event that you fall against a trend, you will lose your money. When a pair is in a ranging market, this will work for some extend but not all of the time. That is why it is not a cup of tea for newbie.

  3. #3
    Quote Originally Posted by ;
    quote read this: https://www.cliqforex.com/trading-sy...ox-system.html key word research nedging by.
    Emmanuel,
    Thank you a lot for introducing me to that thread. It actually helped me. This Hanover is very smart and he is a fantastic writer. Thank you so much!

  4. #4
    The drawback is when you launch the Dollar and price does not go in your initial direction. You're still losing money and also have payed additional spreads / commissions in the process. If you know where to release the hedge, why would not you just take the original trade there? Each time I've tried to hedge, I have been burned. Not a lover. Not saying it can not be useful, I just have not figured it out. Probably great for long term players.

  5. #5
    Quote Originally Posted by ;
    Yes, this is a newby question. Please be kind. I#8217;m sure someone has asked this. Think about buying a long and short of a ranging pair. After some time (or pips), shut the profitable position, bank the cash and open exactly the exact same position. When and if it retraces, do the same. What is the downside to this? Please be kind.
    Read this:
    https://www.cliqforex.com/forex-brok...-datafeed.html

    keyword search nedging by.

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