Thread: Hedging GBP/JPY
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Old 04-17-2007, 04:46 PM
toptick07 toptick07 is offline
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Join Date: Mar 2007
Posts: 215
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Welcome, zulu111!

If you're an experienced stock trader, one of the most difficult transitions to forex will be accepting and adapting to the lack of price transparency and lack of centralized clearing. You are trading only with your dealer.

I suggest looking into the mechanics of forex trade execution when formulating your trading plan and deciding which time frame to trade. Ask your dealer if they act as agent, principal, or both. Good luck with that.

Another factor is the extreme leverage available. Unless you're a prop trader, you're getting at best 10:1 in equities through a direct access broker. Factor in 400:1. Yeah.

These forums are focused mostly on otc spot forex pairs. Option strategies are more suited to currency futures. Some brokers do offer "hedging", or long and short positions on the same pair in the same account. Sorry, no Delta or Gamma here, and I think Theta and Vega just left.

Also, news trades have quite an impact. IMHO, compared to equity markets, retail forex is super sensitive to news- think otcbb.

Check out Fundamental-ville threads for some decent discussion and useful links. Best of luck.
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