News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
More View more
Real Time News
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/hwp2EU0zEm
  • "Wall Street Futures Update: Dow Jones (+0.39%) S&P 500 (+0.12%) Nasdaq 100 (+0.04%) [delayed] -BBG"
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.61% Gold: 0.23% Oil - US Crude: 0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/UQpIKV2jEZ
  • Natural gas prices have recaptured a key trendline after a major heatwave sent energy demand in the United States soaring. Get your market update from @FxWestwater here:https://t.co/7DdcMrObKp https://t.co/G3OuF7Y5IB
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.17% 🇦🇺AUD: 0.11% 🇪🇺EUR: 0.10% 🇬🇧GBP: 0.06% 🇨🇦CAD: 0.04% 🇯🇵JPY: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/lqLaaO04eh
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.38%, while traders in France 40 are at opposite extremes with 70.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/KYpAOemcJX
  • The US Dollar may gain versus ASEAN currencies like the Singapore Dollar, Thai Baht and Philippine Peso after the Fed projected 2 rate hikes by the end of 2023. All eyes on US PCE data. Get your market update from @ddubrovskyFX here:https://t.co/LaLVW8FFHI https://t.co/Y0FoP7A5ZW
  • Dow Jones Rebound May Lift Sentiment for Nikkei 225 and ASX 200 https://www.dailyfx.com/forex/market_alert/2021/06/25/Dow-Jones-Rebound-May-Lift-Sentiment-for-Nikkei-225-and-ASX-200.html https://t.co/G6PRAUQbla
  • Increased rate bets following June's FOMC rate decision roiled markets, including commodities. Crude oil received a boost on Iran's election, while gold and copper look to incoming inflation data out of the US. Get your market update from @FxWestwater here:https://t.co/iGAO4dasIU https://t.co/iwDTDzgaHg
  • So #PBOC unexpectedly increased liquidity injections yesterday for the 1st time since March Sold 30b #Yuan of 7-day reverse repos at 2.2%, up from usual 10b MSCI #EmergingMarkets index understandably happy, eyeing a Descending Triangle Learn more here - https://www.dailyfx.com/education/technical-analysis-chart-patterns/descending-triangle.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/j2r0KTHQ8M
To Hedge or Not to Hedge

To Hedge or Not to Hedge

Richard Krivo, Trading Instructor

Student’s Question:If I've opened a long position that's losing money but I've left it open too long to accept the loss. I could hedge it by opening a short position in the same currency pair.But what is a good way to work out when to close the hedge position. Too soon and I might need to open another, too late and I lose money.Instructor’s Response:Good question...Consider your reasons for opening a short position to hedge the long one: you were in a loss that, as you said, you could not accept. This is a good example of letting emotions win out over your judgement. The best time to make trading decisions is before the trade is ever entered since at that time there are no emotions involved. Lay out your trading plan ahead of time and then stick with it.

If you enter into the trade with a stop loss amount and with a take profit amount predetermined, there would be no need to hedge. The trade either stops out with a manageable loss or you take profit.We do not recommend buying and selling the same currency at the same time. Trading with the trend is one of the techniques to have a greater likelihood of success. So we should either be buying or selling a currency pair based on our interpretation of the direction of the trend on the daily chart. Look only for the pairs that are in the strongest trends to trade and then trade them only in that direction.In a nutshell, hedging can't help us escape the hard reality of the risk-reward tradeoff. A reduction in risk will always mean a reduction in potential profits. So, hedging, for the most part, is a technique not by which you will make money but by which you can reduce potential loss. If the investment you are hedging against makes money, you will have typically reduced the profit that you could have made. And if the investment loses money, your hedge, if successful, will reduce that loss.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES