Hi Michael, I'm interested to know what it is that has made you see the light and also, how bright is the light? Any references would be warmly welcomed. MK
MK, true it does have pyschological value, but i really think it has some true value when used at specific times. you are right, it does have to do with when you made a trade in the wrong direction and you can't always hedge that...sometimes you take the loss. but if you definitely see range trading and happened to step in on a wrong swing, then why not hedge take the profit in the opposite direction and then when the market improves in the other direction sell again. worst case if you hedge and hedge wrong (instead of exiting outright), you make pips that offset your lost pips and probably end up with the same net loss anyways. but by exiting you realized that loss. but we all have different trading methodologies. if you are a long term investor, then hedging this way probably has little value. maybe my view of hedging is completely different than others...what am i new? actually yes
you can purchase up to 50:1 at Oanda, but the effective margin call is 100:1. p.s. I have three computers dual monitors laptop and wireless...
dual monitors for each...now i'm jealous. regarding the leverage/margin at oanda...for some reason i seem to not quite get it. let's assume 20,000 units 50:1 purchase ----> $400 100:1 margin call ----> $200
Well no, 1 laptop w/wireless card no external monitor 1 laptop w/hard wire card no external monitor 1 desktop w/hard wire card with two 21" sony's. This is all in one network..(when I traded full time I had more and two networks, one dsl and one cable). If you have $800.00 you can purchase up to $400.00 and then you can't purchase anymore...but you are not called until your down $800.00 and lose it all (on major pairs).
There have been discussions on two other forums in three threads, about grid scalping. I have found them rather enlightening and I have my ray bans on and I told Wifey to load up the truck that were movin' to beverleeee'...(sung in the tune of the Beverly Hillbillies theme song). Michael B. P.S. I only wish I wrote the system, but I cannot take credit for it. I do have my own tweaks though...
Were not moving anywhere. There goes Electric again with novice attributes. He works on systems for hours at a time, then wakes me up and tells me he struck oil...do you know how many times he has done this! Novice! Sulong is correct, he turns full circle after two years of posting here...and STARTS over! Wifey
This makes no sense at all. If you believe your position is going the wrong way on your timeframe, you should EXIT the position and trade the other side. Please reread your post, it's really wrong to trade like this. Hedging could be of use when trading different timeframes, but for that, multiple subaccounts can be used. Yes, this is correct. $400 to initiate the position and a margin call when your NAV is below $200.
This isnt true though. Say you get a 2 pips spread on euro dollar - most brokers will either be getting hit on their side of the spread or could hedge it with a bank, who typically quote 1 pip spreads. Therefore you can both win.
Yes, that why I wrote IF... But a bucketshop can't, because they don't hedge, because they count on that their customers lose.