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hedging pairs
Mar 19, 2020 at 09:20
Przeglądane 1,269
18 Replies
Uczestnik z Aug 29, 2019
1 postów
Mar 19, 2020 at 09:20
Hi Dears .
which pairs now i can hedge ?
which pairs now i can hedge ?
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.
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.
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.
Uczestnik z Jun 22, 2020
69 postów
Jul 21, 2020 at 06:01
Depends on the conditions of the market, but EUR is usually good one to hedge
Uczestnik z May 24, 2020
102 postów
Jul 21, 2020 at 07:20
In any case, it is best to focus on how the market behaves.
Uczestnik z Feb 22, 2011
4573 postów
Jul 21, 2020 at 08:25
WaleedYKammel posted:
Hi Dears .
which pairs now i can hedge ?
You can hedge any apir
Uczestnik z Aug 11, 2017
870 postów
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.
Uczestnik z Jul 10, 2020
32 postów
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.
Uczestnik z Feb 22, 2011
4573 postów
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
Uczestnik z Jul 20, 2020
278 postów
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.
Uczestnik z Mar 16, 2021
447 postów
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.
Uczestnik z Oct 16, 2020
125 postów
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?
Uczestnik z Mar 17, 2021
494 postów
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.
Uczestnik z Jul 23, 2020
696 postów
Aug 04, 2021 at 10:31
New traders should try it in major pairs.
Uczestnik z Jul 23, 2020
816 postów
Sep 03, 2021 at 16:49
It is a kind of strategy to minimize the risk.
Uczestnik z Jul 19, 2020
749 postów
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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