hedging pairs

Mar 19, 2020 at 09:20
1,049 Views
18 Replies
Member Since Aug 29, 2019   1 posts
Mar 19, 2020 at 09:20
Hi Dears .

which pairs now i can hedge ?
Member Since Feb 09, 2020   26 posts
Apr 25, 2020 at 20:15
The process of hedging involves a single currency pair or two different currency pairs that have a common base currency. Some traders also use correlation to find different currency pairs with positive or negative correlation with each other, and then enters a buy or sell position according to their market analysis. So it's up to you what to do.
Member Since Jun 30, 2020   90 posts
Jul 11, 2020 at 07:09
This is also one of the options in order to secure your trade.
Member Since Feb 12, 2020   21 posts
Jul 20, 2020 at 16:22
This is the basic hedging procedure on the market:
Buying Euro - EUR/USD
Sale of Swiss franc dollar - USD/CHF
These two assets have a strong negative correlation, which means that when the euro rises, the Swiss franc falls by the same value, equally.
Thus, if the acquired asset loses value, the trader receives a loss amount due to the position on the second asset, which reacts with the same amplitude.
Member Since Jun 22, 2020   77 posts
Jul 21, 2020 at 06:01
Depends on the conditions of the market, but EUR is usually good one to hedge
Member Since May 24, 2020   112 posts
Jul 21, 2020 at 07:20
In any case, it is best to focus on how the market behaves.
Member Since Feb 22, 2011   4862 posts
Jul 21, 2020 at 08:25
WaleedYKammel posted:
Hi Dears .

which pairs now i can hedge ?

You can hedge any apir
Member Since Aug 11, 2017   886 posts
Jul 24, 2020 at 10:45
i think USD always volatile currency pair than others , sometime you can get profit by means of this pair but most of the time its difficult to predict the real faction of this currency with certainly. 
Member Since Jul 10, 2020   34 posts
Jul 27, 2020 at 07:59
It’s very much dependent on market conditions. But generally speaking, major currencies like USD, GBP and EUR are good ones to hedge.
Member Since Feb 22, 2011   4862 posts
Aug 17, 2020 at 08:09
Shalinara posted:
This is the basic hedging procedure on the market:
Buying Euro - EUR/USD
Sale of Swiss franc dollar - USD/CHF
These two assets have a strong negative correlation, which means that when the euro rises, the Swiss franc falls by the same value, equally.
Thus, if the acquired asset loses value, the trader receives a loss amount due to the position on the second asset, which reacts with the same amplitude.

That would sometime work but sometimes not
see https://www.myfxbook.com/forex-market/correlation/USDCHF-EURUSD
Member Since Jul 20, 2020   341 posts
Dec 17, 2020 at 12:04
Hedging is the most dangerous trading strategy if you don't have any knowledge about it. So, gather proper knowledge, before using hedging on your trading.
Member Since Mar 16, 2021   477 posts
May 26, 2021 at 01:09
ElliotCooke posted:
Hedging is the most dangerous trading strategy if you don't have any knowledge about it. So, gather proper knowledge, before using hedging on your trading.
Yes, I agree with you. Not learning hedging strategies can be detrimental to investment.
Member Since May 31, 2021   56 posts
May 31, 2021 at 14:35
What is hedging pairs, and why do some traders say it is dangerous to use them?
Member Since Oct 16, 2020   137 posts
Jun 01, 2021 at 10:39
Shalinara posted:
This is the basic hedging procedure on the market:
Buying Euro - EUR/USD
Sale of Swiss franc dollar - USD/CHF
These two assets have a strong negative correlation, which means that when the euro rises, the Swiss franc falls by the same value, equally.
Thus, if the acquired asset loses value, the trader receives a loss amount due to the position on the second asset, which reacts with the same amplitude.
Do you have a particular reason to choose this pair or this is just an example? Do all the pair with same base currency have a negative correlation?
Member Since Mar 17, 2021   536 posts
Jul 28, 2021 at 10:35
ElliotCooke posted:
Hedging is the most dangerous trading strategy if you don't have any knowledge about it. So, gather proper knowledge, before using hedging on your trading.
I agree with you.
Member Since Jul 23, 2020   759 posts
Aug 04, 2021 at 10:31
New traders should try it in major pairs.
Member Since Jul 23, 2020   869 posts
Sep 03, 2021 at 16:49
It is a kind of strategy to minimize the risk.
Member Since Sep 22, 2018   70 posts
Sep 06, 2021 at 20:06
WaleedYKammel posted:
Hi Dears .

which pairs now i can hedge ?


EUR. is normally good to hedge
Member Since Jul 19, 2020   751 posts
Jan 01, 2022 at 03:50
I don't hedge because hedging is for professional traders. If I see that my position is in losing position, I will close them up.
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