i’ve been working with them for about half a year and i can give them 7 points because their trading terminal sometimes works slow.
Guys, I always wanted to ask, why do companies such as yours always have offshore registration? Any problem with law in normal countries?
maybe there is a problem - in some countries taxes are too high and registered in offshore company’s CEO avoid taxpaying =)
I like hedging mainly to dodge trends. A hedge effectively locks all my positions to the market, like an anchor locks a ship. Since the pairs prefer to move during peak hours I can lock things up and not think about a news event destroying my trade.
Hedges also have possibilities I have yet to appreciate in EA. Position-based trading offers advantages like sniping extreme positions while others can sit until they are in range.
I don’t see any real changes awaiting traders…brokers maybe
Dear Andrea,
There is no problem with law. Brokers willingly register in offshore financial centers because of tax optimization. Like any other company we want to minimize taxpaying. Nothing illegal. This is a common practice when financial companies (as well as companies of any other sort) go offshore.
And what about laws? It appears that you have to obey both offshore and domestic laws. That is not quite “optimizing”
Dear Val Novod,
I think this is the question to our lawyers and accounting specialist, not to me. The main idea here that the company doesn’t break rules of any kind and everything is done in accordance with international law.
Dear rossiya,
But there is always a problem how to close an unprofitable trade. I know that many newcomers try to implement hedging technique and then give up when it comes to them that they cannot break this circle. Could you give them any advice on it?
From the boards it seems people successfully employing hedges do swing trading. If you KNOW the market is working in a limited range then why not short the high and go long on the low? You have to know when a pair is in a squeeze and confirm with indicators. Typically you’re not hedging but taking one side. But when a ‘news event’ or a strong trend hits you can employ limit orders to put all positions in a hedge lock. That way your equity is protected even with huge market swings. You can go out to dinner, keep an appointment or do something fun and track the market with a phone for ranging to begin again.
That’s the great thing about currencies: Unlike General Motors who lies about their prospects a nation like USA cannot lie forever about their frivolous money policy. And a major currency may vary 50%, but unlike stocks they rarely fall to zero. In FOREX you can make that 50% back merely on the predictable aftermath.
For those inclined to maths, some have pointed out that hedges are an abelian group and they are group theoretically equivalent to an MT5 trade system. However math transcends practicality, and an MT5 average of a system is not the same system. Among other things there is the arithmetic, harmonic and geometric average. Which will be employed? I don’t think this is well researched.
I don’t think hedging will bail out someone losing on trades. Only money management can do that. I think it is so much better to catch the beginning of a trend and ride it out with a small lot, like ocean surfing. Let distance make your money instead of forcing your money to make more money. Placing large lots is like gambling. A virtuoso doesn’t employ force money rather he works effortlessly with a deeper insight. A newbie has no business using large lots. Rather he should learn how to avoid doing so, which will make that killer trade like July 15, 2008 much sweeter.
Dear rossiya,
Thank you very much for your explanations and helping our readers to understand this.
Last Thursday dollar gained much of its lost positions making new trend by EUR/USD which is believed since then will be falling.
Investors are still focused on Dubai World problem (Dubai State Fund responsible for external debt – the company owes over 59 billion dollars to British government) performing risk-aversion and leaving stock market aside.
Probably this dynamics of the last will remain the same at the beginning of a new one.
Hello Liteforex representatives, I just learning forex. Las Friday I was going to do a buy trade on EUR but confused buttons in the terminal and clicked Sell instead of Buy. I didn’t want to sell EUR at all. Price was at 1.4855 and now it’s higher than 1.500. How can I cancel that trade cuz it was just a mistake?
Dear Irochka19,
Unfortunately we cannot help you in this situation even if you confused buttons by mistake. Once opened the trade can be canceled only by taking the opposite trade. It means that you have to do a Buy side trade to close your position and fix the losses. There is an alternative – you can wait for the price go down. But this can be very dangerous.
Daer irochka19, we are sorry for the problems you’ve faced lately, but let’s clear up a few things. First of all, this is not LiteForex who made and invented MetaTrader Platform, but it’s MetaQuotes Company.
Secondly, in case you’ve made such a mistake you should have closed your position, not wait for four days till it’s getting worse.
From now you can only open new position to counter your former loses
So you mean that you lack the competence to hit the right button when there are two to choose from.
And then you blame the broker for your mistake? Unbelievable.
Grow up and learn to accept the responsibility for your own actions and mistakes.
Irochka19, here’s some piece of news for you to take a little training course of Forex:
On Tuesday, December 1st, Forex market again shows growth of the European currency against dollar. The heated debates on Dubai World problem gradually ended, and though negative influence still remains, risky currencies are in demand again thanks to increase of liquidity which ECB and other banks continue to pump up in the markets. Nevertheless, experts consider this dynamics quite sceptically. In general, the macroeconomic image remains the same. Only some sectors of economy show growth, however it is caused by the governmental support, there are no real investments in the economy. At the same time, fears concerning next steps of policymakers towards current monetary policy. It is quite probable, that the situation with Dubai Worlds can occur once again, and that in the future some other company will request for financial help in order to settle of multi-billion debts.
Meanwhile, macroeconomic data came out, in general, according to expectations. The reserve Bank of Australia has raised interest rate to 3.75%. Volumes of retails in Germany have shown planned growth by 0.5 %. The Rate of unemployment in the Eurozone in October has risen to 9.8%. It is likely, that current ascending dynamics of euro will remain up to Thursday when the next portion of the important data among which gross national product gain in the Eurozone for 3 quarter 2009, unemployment in the USA.
I’m surprised LiteForex doesn’t have a clear disclaimer saying that you are responsible for your actions and any trades entered in error.
My advice to you is to double check before clicking the button and once you are in a trade confirm that it is indeed of the correct size and in the right direction.
My advice is the best you’ll ever get. You just don’t understand that.
I will stay away from you not to waste more of my time.
Good luck
Hallo Irochka,
you cannot learn forex within two weeks. don’t rush hehe 
check out babypips’ school of pipsology. 
I agree with you sir 
Indeed! Be responsible and accept all the consequences of your mistakes. Take good care next time, it is your money.