hedging pairs
Mar 19, 2020 at 09:20
Przeglądane 1,060
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
77 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
112 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
4862 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
886 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
34 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
4862 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
341 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
477 postów
May 26, 2021 at 01:09
ElliotCooke posted:Yes, I agree with you. Not learning hedging strategies can be detrimental to investment.
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 Oct 16, 2020
137 postów
Jun 01, 2021 at 10:39
Shalinara posted: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?
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.
Uczestnik z Mar 17, 2021
536 postów
Jul 28, 2021 at 10:35
ElliotCooke posted:I agree with you.
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 Jul 23, 2020
759 postów
Aug 04, 2021 at 10:31
New traders should try it in major pairs.
Uczestnik z Jul 23, 2020
869 postów
Sep 03, 2021 at 16:49
It is a kind of strategy to minimize the risk.
Uczestnik z Jul 19, 2020
751 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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