Thread: How to hedge?
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Old 05-22-2007, 01:24 AM
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stucros stucros is offline
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Quote:
Originally Posted by Forex Ninja View Post
Technically, taking a long AND short position on the same pair is called offsetting, not hedging.

Example: Long EUR/USD and Long USD/CHF. Since the two pairs are inversely correlated, assuming you opened equal position sizes for each pair, your net position should stay close to neutral. Of course, this correlation decouples from time to time, so be careful.
Wouldn't this just give you the same risk profile as going long eurchf?
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