Lowest amount 4 hedging

Hello guys!
What is the lowest amount you would invest in 1 trade position if you plan 2 hedge against it (both:'delta and hedging within same sector)
Thanks a lot 4 suggestions.

Are you a new trader? Then, don’t go for it (hedging trading)! But, if you are confident enough about your trading skill; then best of luck.

Hi Luke,
I m not new. Already years in2 trading. I want 2 test my new strategies on demo and I would appreciate someone who can give me advice for lowest invested amount because as u know you ve to pay fees plus part of my testing is 2 use leverage which I did not till now plus while I ll hedge I want 2 diversify this hedging amount in2 more trading positions than one so I need amount which I can devide equally, which is not too low considering fees i ll be paying 4 each hedging position and still suitable to use for leveraging… So advice from already experienced trader would be gr8 :wink:
Thank u!

there isn’t enough information about the trade to answer the question.

:thinking: Could u give me any hint what exactly I need to know to answer your request lol :grin:
(Just to avoid plain bollock talking lol)

Lot sizes
the instrument you are trading (would be a good start)
risk
hehe
this should be obvious
if it’s not then you should not be trading let alone hedging

it is really starting to sound like you probably shouldn’t do it
and you should be doing more research

so. if you want to avoid bollock talk
do more research and forget this idea for now
you don’t seem to know enough about it yet.

Let us start off by asking, “Why are you hedging” to begin with. Typically hedging is used to lockin profit/losses by matching the order which was originally opened. So say you are using any system and you decide to short for 2.00 lots. All of a sudden you are down 15% because of that horrible trade and now you hedge your loss. You would then buy for 2.00 lots and then determine which of the two orders to release in order to make back the loss you incurred from the sell.
So in essence the minimum required to hedge is the minimum lot size your broker allows you to place.

That kind of talk is what makes people not want to post. If you are going to deter someone from asking questions, you might as well not respond. I would agree his messages seem confusing but come on Martin_K

ok. let me address a few things here

Cmon… What ??

i mean…

I’m not trying to deter him to begin with

but in saying that, he’s talking about hedging and yet doesn’t even mention what instrument he is talking about

I’m not being rude or anything like that
but understand something,
Does he expect to be spoon fed the secret formula so to speak to making money in forex.

i put in my hard yards, no one taught me
now, if he wants answers , he should at least show that he’s put in effort

every newbie goes on about hedging and making millions and this bot and that indicator and so on and BS and more BS and so on and so forth
they all think they are going to get rich over night
then you have people talking about hedging when they don’t even really understand what it is to begin with.

Mate, as an example, i literally just got off the phone with a mate,
around a month ago we were discussing him buying a house, the mortgage is over 30 years and with interest the repayment is around 1 million dollars

now. i pulled out a spreadsheet and flipped some numbers and based on my experience to earn in forex and my risk plan i have calculated that i can VERY SAFELY cut his mortgage down to 8 years and pay it off in cash, ALL FROM THE EARNINGS OF FOREX

this is not a pipe dream, it’s a reality
now, to do this requires experience, experience that i have earned by putting in my time and effort.

now… can i teach this to someone else…
yes i can
i’m actually teaching my little nephews to do it and i’m teaching my mate so that he can use leverage of using other people’s money to pay off his home quicker while helping them pay off theirs

so… i can teach this…
but, lets’ say someone like this guy asked me to teach him… WHY SHOULD I ?
what has he done to deserve it

i mean he hasn’t even specified which instrument he is using and he wants us to answer a hedging question.

so as much as i would like to help, my answer was not rudeness
but it was more of a HINT HINT and a kick up the bum to get your shyte in order before posting such things

I mean seriously mate
every day on babypips you get newbies asking stupid stuff like

how do i make money in forex
how can i make 50 pips a day
how can i quit my job
etc etc

everyone wants to PUT IN NO EFFORT but be given the magic pill to financial freedom

it doesn’t work that way

and he provides little to no information and expects a tangeable answer in return hehe
Not really gonna happen is it ?

so IF ANYTHING i’m trying to help him buy giving him a kick up the bum, as opposed to telling him
it’s alright, we’ll give you all the answers even though we’ve worked our arse off for it, we’ll just give it to him for free
god forbid we should ask for a few grand for our time and effort and experience, maybe we get called scammers if we ask… huh
hehe

KNOW WHAT I MEAN

bottom line… he has to ask a proper question and put in effort if he wants a decent answer

but i was not trying to deter him
but the question was a bit stupid as well… ok

1 Like

Well said. I would agree that you were not trying to deter him. I apologize for having used that word to describe your intentions. As for me, I love to scam noobs that is why I answer all their questions. lol

Usually 1% or less of available leverage. You will need to unlock your hedge at some point. Sometime averaging will also help mitigate your risk. Thus, your won’t want your initial lot size to be too big. Otherwise there will be no room for averaging. And it is damn stressful.

1 Like

O…K…
Not really sure what to say to that, or how to take it.

There is no specific amount for hedging. As it is dependent on the currency pair you want to trade in. You may know that in hedging we take simultaneous buying and selling position on a currency pair so that no matter in which direction exchange rate goes, the risk will be zero. So I can’t really specify any amount for hedging.

:wink: There were many pleasant things done to my butt but for sure neither was kicking… LOL
As you assume YES I am a woman.
To my way of talking - I tried to be friendly and deeply respectful to you and your skills of trading as I know the way to gain them is time and hardship (not to mention money) and did not want to waste your time and energy on my long posts so I asked directly what would you like me to write to make it short and to the point.
I also know how demanded can newbies be… My respect that you re willing to give them part of you.
I accept your opinion about my level of knowledge and have to admit it hurt to read so I needed time to absorb the things and look at what you wrote in distance of time and emotions to not to take it offensive. That 's why I did not react for a while.
I came to forum in friendly spirit to know some other traders as I do not have any around me and I never had so I did not have a clue how to behave appropriately. I was friendly and polite.
I hesitated a lot if I have to even express myself on your posts… As I saw there were other really nice professionals who got involved (thank you guys :wink: I didn’t come to cause the war in here… That s why I decided to put the record straight.
Thank you Martin for your time. And sorry if I offended you anyhow.
Peace & Love

you didn’t offend me

my point was if you want an answer, you need to give a question that has enough detail.

Example :
i’m in I.T. and Electronics Repair
Now… if you ask me

"Martin, My TV is broken, how do i fix it"
WHAT THE HELL DOES THAT MEAN

i don’t even know the problem to even start troubleshooting, how can i answer this ?

Your question is the same, you asked a question that cannot be answered.
Give more detail in the future
asking a simple question in forex will not get you the answer that you require

it will get you AN ANSWER
but the answer will usually be pointless and useless

the purpose of asking questions here , is so that those answers translate to profits in forex.
asking simple questions and getting simple answers will not translate to profits
simple as that

but, i’m not offended
be cool