Multiple brokers for hedging

[marionette]

That Tymen is reading my thread ‘with interest’ gives me quite a thrill…I’m about halfway through “best in trend trading” and honored to have an oracle to the forex gods have interest in these newbie meanderings…

[adam2010]

Totally incorrect. If you go long at 100 and the market falls to 95 and you then go short at 95 you’ve locked in a 5 point loss. If the market then rallies back to 100, the long may have made back the 5 points, but now the short has lost 5 points. You can try any permutation or combination you like. If you buy/go long at X and sell/go short at Y, regardless of the order in which you do it or what you call the process) your P&L is always going to be Y-X.

Thanks for info man.

[adam2010]

I am watching this thread with some interest.

Adam2010 clearly needs to learn some things about hedging. - or better stated - offset trading.

We’re here to learn, there’s noone who knows everything !!

[adam2010]

Adam, if I took such argument to my snooker buddies in ‘the constitution debate’ I’d get barred from the next two or more rounds… here pips have learned to just watch in amusement then hand it back to sender two years down the line when ones learned how to really trade.

The idea or querry here was how to not miss out on the sudden jumps being made by price? How is a hedge expected to achieve this? I insist its a straddle.

I’m interested knowing this too.

[rhodytrader]

The idea or querry here was how to not miss out on the sudden jumps being made by price? How is a hedge expected to achieve this? I insist its a straddle.

If you’re talking an option straddle then yes because your losses on the losing leg are capped by the cost of that option. If you’re talking simultaneous long/short positions, then it’s no good because either the losing position offsets the winning one or you’re taken out of one side and are left with a naked exposure on the other.

[chizzenpips]

Yes, one’d loose one trade if the gap between the two is too narrow to get both hit? Or if the one that is hit was a looser but we wouldn’t have known and thats trading. If one studied the chart a bit, (did that, realized to move s+r to lessen crowding) see that only one trade gets hit in the direction price decides to take. At worst, I’d get stopped out at 1.2625, I didnt say it was risk-free. Again, timing for setting up the positions has to be right, like London session Thursday morning just before the jumpy candles when one has to go someplace away from screen?

The options straddle, I don’t know that term, please explain. Thanx.

[rhodytrader]

The options straddle, I don’t know that term, please explain. Thanx.

Buy a call and a put with the same strike price.

[chizzenpips]

Phew, I’ll google, thanx again.

[hayse]

place a buy and a sell at the same time on 2 different accounts on same pair a stop at 150 pips a take profit at 500 pips and a trailing stop at 151 pips on both orders… in this way you will catch a trend at some point having the profit exceed the loss
that’s why and how people hedge.