Hello all…
It’s really make me confused,
I like hedging, but i do not know which should be closed…
Your broker probably likes hedging more than you do !
Why pay double the spread for a position that can only be long, short or flat ?
Why not just be long, or short, and pay half the cost, or flat, and pay nothing ?
What advantage does hedging give you ?
Well avoid hedging at all cost. You are going to blow your account if you don’t know how to do it. Try to develop some other systems
Hedging is a nice idea, but more difficult to carry out especially with the limited options many of the retail brokers offer. In any case, if you’re hedging a position then I assume you close out both positions, because you’re closing out your trade idea. Trading is effectively an implementation of an idea (fundamental or technical), so as soon as that idea become invalid then you close all the positions that are meant to reflect that idea.