How is it possible that being an account Hedge, the Equity decreases?

Jan 26, 2015 at 20:16
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5 Replies
Member Since Jul 23, 2013   1 posts
Jan 26, 2015 at 20:16
This is real situation that I encounter, I’ve got several trades GBPUSD (MT4) in 100% Hedge and every day I’ve got minus Equity, …. ???
 It’s possible to reach zero and lost the account?

How is possible to happens, normally with hedge we can stay invariably for long time??

Someone could be help me…
Member Since Nov 21, 2011   1718 posts
Jan 26, 2015 at 20:49
Please find out about swap
Member Since Nov 03, 2014   5 posts
Jan 27, 2015 at 07:10
It's the swap.
Member Since Aug 30, 2012   104 posts
Jan 28, 2015 at 07:47
Spreads ;)
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Member Since Jan 15, 2014   30 posts
Jan 29, 2015 at 03:36
Its the swap like these guys are saying but it will depend on the direction of the currency. Some currency have a positive swap in one direction and a negative swap in the other direction.

Some swaps are negative in both directions.

I wish there was super liquied currency with positive swaps in either direction.
Member Since Nov 21, 2011   1718 posts
Feb 01, 2015 at 11:56
Species8472 posted:
Its the swap like these guys are saying but it will depend on the direction of the currency. Some currency have a positive swap in one direction and a negative swap in the other direction.

Some swaps are negative in both directions.

I wish there was super liquied currency with positive swaps in either direction.

There is no 'but'
Once you are hedging... it doesn't matter because the negative swap will always be higher from positive swap... as brokers are also taking commissions from swap.
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