Forex Trading : you need to read this article before try to make money through hediging. – Playstore

Forex Trading : you need to read this article before try to make money through hediging.

Hedging in Forex

Trading signals

Hi Readers,

What I am about to discuss is the most important part of trading which is known as hedging. Hedging can be of two types. One is hedge the lossing pair with double lot or hedge the correlated pair in the oppposite direction and if you do it for long term investment purpose then it is the biggest threat to your account capital as it put all your account equity at risk if one of the position will be driven by risk.

Hedging don’t work in long term position trading as you can see a pair in full flow take time to reverse and other correlated pair might reverse at pace leaving you to start showing fear & mistakes will start showing on your account equity. Same can be said about recent trends in Aussie & Loonie. These two pairs trend almost oppositely since decades but recent reversals in canadian dollar is way to sharp Australian dollar is in long term consolidation perhaps investors or banks taking a breather for big moves.

Loonie or candian dollar post a multi year high around 1.4750 area, and fallen to  the low of 1.1950 area, but Aussie has not recovered from the lows of 0.6500 area leaving hedge fund too start looking to move other currencies like Euro &  Yen or perhaps inject some cash in Bitcoins.

Related Posts

Institutional Traders Left shoulder price action -How to trade Head & Shoulders pattern

Forex head & shoulder patterns > As I’ve already mentioned that most of the price action patterns failed because all of are probably based on fibo ratios,…

Bitcoin Price Prediction and cryptocurrency news that will drive the price of Bitcoin

Bitcoin Price Prediction I would like to alert my Blog readers about the advancement in price of bitcoin. Bitcoin is always in news & U.S is planning…

Ema Trading With example of current price Action of Usd/Jpy

Following the backtest of EMA price action as I mentioned in my previous post Recent pair to watch usd/Jpy. Price is being strongly supported by EMA 72…

Time to Revive the Forex Education Stop hunting process

Forex Price Action with Stop hunting process As all of you know that Forex is a place where there are enough orders to execute the facilitation &…

Is this market really fundamentally driven ?

I’ve seen market takes turn based on what big players are focusing. Federation and Trump & OPEC, people with big guns turns the market at will. How…

Usd Franc Upate Possibly eyeing 0.9931 source of the origin for the next leg down

Check The Usd/chf chart here

Leave a Reply

Your email address will not be published. Required fields are marked *