Hi All,
I am new to forex trading. I opened a few mini lot trades and eventually some trades went against me which leads to a margin call. Right now I am balancing my trades for example EURUSD i sell 0.1 lot and also buy 0.1 lot i dont set any stop loss or take profit.
Right now I have no idea what i should do with those positions that I balanced. My margin level is at 400% currently.
Please tell me if there’s any technique to eventually close both positions without taking any LOSS.
While your positions are balanced, your unrealised loss cannot get any worse. So if you are short and your short trade is losing $500 and you have balanced this with an equal long trade which is now at $0, the most you can lose is always going to be $500. From here on, whether price goes up or down, as one trade makes $1, the other loses $1. But you also cannot make any money to reduce the unrealised loss.
To eliminate the $500 unrealised loss you will eventually need to close one of the trades when price starts to move strongly in the other direction. You do not have to do this quickly as your losses cannot increase as long as you can keep both trades open.
After that, start practicing trading with a demo account.
Thank for your reply. Currently I was thinking to close the position that has profit. While the one that have negative profit I will just monitor till it takes profit. So while waiting I just need to ensure that I have sufficient free margin to support the loss.
I’m just doing this based on common sense but I am unsure if there are any risks that I am unaware of. What do you think?
Managing trades by their unrealised loss or profit is like gambling. You roll the dice and you have no input and no knowledge as to what numbers will show next.
Making a plan should be done before you open the trade but there might be things you can do to recover the situation. If your trade is based on what you see on the chart, you should be able to see if price is more likely to rise than fall. If price is rising and is more likely to keep rising than to fall, keep the long open, close the short. Keep the long open until price isn’t rising and is probably not going to rise from here.
If you don’t know whether price will rise or fall, keep both your balanced trades open until the chart shows you what to do. Your loss cannot increase while you have opposing trades which balance each other.
what are your entry points and when
any technique should have been thought out before you even put on the trade
you are not at that level so it seems
tommor, has got that right, trading the eurusd at least you have liquidity on your side, I would bet that your long(s) went against you and you didn’t close the losers figuring it would turn around. Then you placed hedge(s) but still didn’t close the losers.
Take a look at the USDX or DXY if your broker doesn’t provide access use tradingview.com. EURUSD almost 99% of the time trades opposite the DXY.
If it isn’t going your way its time to move on, close the losers and build a winning position within reasonable limits of your equity.