Anyone have two accounts and do regular hedging?

Discussion in 'Chit Chat' started by jackedup, Apr 20, 2005.

  1. Two seperate accounts and a long and short position in same pair(s) executed at the same time. Just wondering. I tried it the other day and it limited my exposure significantly and made some green. But i wanted to know if anyone out there has been doing this regularly for a period of 1-2 years and their results.
  2. liri


    I have tryed that but to be honest i used to get lost,so now i use one account for long term trades and the other account for day tay trading.
  3. Everest


    Why on earth would you want to do that ? First of all you will be on the outside of the spread in both markets, you'll be paying two lots of comm, and you'll be exposing your self to double the amount of errors, howsoever they may be caused.

    Bad move all round.
  4. If you are trading 2 different systems or trading on 2 different time frames, and instead of having one signal reverse the other one you want both trades open, then I could see trading in 2 separate accounts.

    But to put a long and a short on at the same time makes no sense that I can understand. It would be like flipping a coin and having it land on the edge, except as one person mentioned, you would have the extra commission and the bid-ask spread against you twice.

    I am curious, why would you want to do this anyway? I would think that you would take the losses that your system or method incurred, but that you wouldn't want to have a limitation on the profits available.
  5. tomcole


    Maybe hes trying to range-trade and not get stopped out whens he wrong.

    Why not put on an options trade to mimic the same thing?
  6. Going long and short at the same time is a good idea. Similiar to an option straddle/strangle but without time decay. I don't understand why its not allowed in one account.

    With a leverage of 200:1 a 50+ pip move will produce a profit. Looking at the EUR/USD chart 50+ moves happen almost everyday. On each order you would put in a stop for a max of 50 pips.

    To avoid having to accounts you could use the EUR/USD and USD/GBP combo
  7. You can eliminate the spread differential by using FXCM and Refco and if you're up 50 pips, the double spread is negligible. This way you can minimize your risk and yes it's very much like an options straddle. Exact same principal.
  8. If you are long a product in one account and short in another you have essentially closed your position. Any move in the market cannot produce a profit, maybe I missed something, but this doesn't make any sense.

  9. Anseld


    not at all.
    #10     Apr 20, 2005