-->
Register


Results 1 to 12 of 12
  1. #1
    Administrator Guest

    Exclamation Hedging: How To Go Long & Short At The Same Time!

    Hedging

    Click Here for a PDF version of the User Guide

    The hedging feature allows traders to have both a buy and a sell position on one currency pair at the same time. To establish a hedged trade, you can simply place a market order in the opposite direction of your existing position. This will establish a second ticket.

    The margin requirement on the initial trade will be the standard required margin for trades on your account. For hedged positions, once the second leg of the trade is added, the margin requirement will be divided among the two positions.

    A position can still be closed with a stop-loss order, a limit order, or by left-clicking on the close price in the Open Positions window. You can also close a trade by left-clicking on the ticket number that you would like to close, then clicking the close button at the top of the trading station.

    Clicking on the Sell or Buy buttons at the top of the trading station will NOT close out an existing ticket. Clicking on a quote in the Dealing Rates window will also NOT close out an existing ticket.

    Entry orders that are triggered will also NOT effect existing positions. When executed, an Entry order will simply create a new position regardless if the client has an existing position in that currency pair.





  2. #2
    cinque423 is offline Registered User
    Join Date
    Oct 2008
    Posts
    4
    Question about hedging,

    If I have a position that I'm using a trailing stop with, is there a way to have a hedge position that also moves with the main positions trailing stop???

    For example, I open a market order for a short position using a trailing stop. I then use a market entry order to place a long position 100 pips from the price of the short position. As the short position moves, I have to MANUALLY move my long position to keep it 100 pips from the short price.

    Is there a way to AUTOMATICALLY do this????

  3. #3
    DuitLikeMe is offline Registered User
    Join Date
    Nov 2008
    Posts
    1

    Margin call while hedging???

    I placed hedges (63 buys) on my open trades (63 sells) before I left for work this morning, because I didn't want to leave it unattended while I was gone or take a huge loss before leaving.

    My usable margin was hovering right around $28-$31 steady when I left.

    When I came home from work I noticed the account had margined out on me.

    How could this be if the positions were hedged

    thx
    Dennis

  4. #4
    gtrplayr03 is offline Registered User
    Join Date
    Nov 2008
    Posts
    1
    Quote Originally Posted by DuitLikeMe View Post
    My usable margin was hovering right around $28-$31 steady when I left.
    Could a temporary large spread have caused this? Just a guess, but since the buy-sell spread is your only loss while hedging, I couldn't see what else could have caused it.

    Jared

  5. #5
    ananth85 is offline Member
    Join Date
    Apr 2009
    Posts
    7
    Quote Originally Posted by DuitLikeMe View Post
    I placed hedges (63 buys) on my open trades (63 sells) before I left for work this morning, because I didn't want to leave it unattended while I was gone or take a huge loss before leaving.

    My usable margin was hovering right around $28-$31 steady when I left.

    When I came home from work I noticed the account had margined out on me.

    How could this be if the positions were hedged

    thx
    Dennis
    I have also experienced margin calls several times like waves... lol. I guess it`s coz of variable spreads... And the spreads increase 10 fold during NFP or other news... so, better ensure u have good balance and hedge little... use MM.

  6. #6
    ForexGuides is offline Registered User
    Join Date
    May 2009
    Posts
    2

    Post Hedging: How To Go Long & Short At The Same Time!

    FxSol allows long and short at the same time.
    Forex Guides

  7. #7
    ForexGuides is offline Registered User
    Join Date
    May 2009
    Posts
    2

    Hedging: How To Go Long & Short At The Same Time!

    FxSol allows long and short at the same time.
    i again replying

  8. #8
    Iou
    Iou is offline Registered User
    Join Date
    Oct 2008
    Posts
    2

    Ban on hedging

    Hi
    I recieved a fxcm mail about ban on hedging. One of the options is to move account to fxcm UK. But there is no such thing as Micro account in fxcm UK. Will they create it for migration accounts or and will they convert Micros to something else?
    Anybody knows?

  9. #9
    Join Date
    Nov 2008
    Posts
    297
    Quote Originally Posted by DuitLikeMe View Post
    I placed hedges (63 buys) on my open trades (63 sells) before I left for work this morning, because I didn't want to leave it unattended while I was gone or take a huge loss before leaving.

    My usable margin was hovering right around $28-$31 steady when I left.

    When I came home from work I noticed the account had margined out on me.

    How could this be if the positions were hedged

    thx
    Dennis
    . .
    Last edited by imported_Bigpips; 05-11-2009 at 07:25 PM.

  10. #10
    Join Date
    Nov 2008
    Posts
    297
    Quote Originally Posted by gtrplayr03 View Post
    Could a temporary large spread have caused this? Just a guess, but since the buy-sell spread is your only loss while hedging, I couldn't see what else could have caused it.

    Jared
    No, while hedging you still have the pay the roll over differential. So even if the price does not move, if that difference is negative (like most of the time) you will be losing money every day. If both roll over are negative you will be losing money much faster.
    Last edited by imported_Bigpips; 05-11-2009 at 07:24 PM.

  11. #11
    Walker England's Avatar
    Walker England is offline DailyFX Course Instructor
    Join Date
    Jan 2009
    Posts
    929
    Quote Originally Posted by Iou View Post
    Hi
    I recieved a fxcm mail about ban on hedging. One of the options is to move account to fxcm UK. But there is no such thing as Micro account in fxcm UK. Will they create it for migration accounts or and will they convert Micros to something else?
    Anybody knows?
    There have been recent developments in regulations here in the US regarding hedging. You may transfer your micro account to be traded through FXCM Uk. ltd. To learn more please see our regulations portion of the forum.


    REGULATIONS



    Walker

  12. #12
    donkirk is offline Member
    Join Date
    Oct 2007
    Posts
    6

    1 Pip Trailing Stop?

    Gentlemen

    Literally for months now, you have been testing the 1 pip trailing stop with the Demo accounts. Also literally for months, FXCM has said that this will be incorporated in the Live Accounts (Micro & 100K) "shortly" to "within a couple of weeks"

    I'm sure I speak for all Live account holders when I ask "when is FXCM going to implement this feature - which is standard with the majority of the competitors platforms".

    In other words, why can I have this functionality in my Demo account, but not in my Live account? Seems ass-backwards, does it not?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Forex Capital Markets LLC. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.