Quote:
Originally Posted by hobbit
Well, instead of going to the school of zero risk hedging is the school of minimal risk. While minimizing risk it also minimizes profits at the same time. It is like buying an insurance policy for a trade.
Forex Hedging @ Forex Labuan |
Wow you really know your stuff.... is that the first link when you google or the second?
What he is describing is called a 'perfect hedge' hence no risk simply paying spread to your broker.
I personally think it is hard for us retail guys to be making good carry trades as the spread our brokers have on the carry is so wide it's a bit of a stealth tax (i've never seen a broker advertise how good they are with the caryy spread and infact most try to hide it!) but i'm sure there are people out there that even with this big disadvantage make money.....