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hedging pairs
会员从Aug 29, 2019开始
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Apr 25, 2020 at 20:15
会员从Feb 09, 2020开始
26帖子
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
会员从Feb 12, 2020开始
21帖子
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.
会员从Jun 22, 2020开始
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会员从Jul 10, 2020开始
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Aug 17, 2020 at 08:09
会员从Feb 22, 2011开始
4862帖子
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
会员从Jul 20, 2020开始
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会员从Mar 16, 2021开始
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May 26, 2021 at 01:09
会员从Mar 16, 2021开始
477帖子
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.
Jun 01, 2021 at 10:39
会员从Oct 16, 2020开始
137帖子
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.
会员从Mar 17, 2021开始
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会员从Jul 23, 2020开始
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会员从Jul 23, 2020开始
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