100% Hedging Strategies

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Hedging is that two or more positions at the same time, when the objective is to determine the losses in the first position is given by the gains of other eccentrically.
The usual hedging open currency position and the opening of an inverse to this task in the same currency A. This type of hedging protects the trader from this win, the collateral when the second drive, if the first loses, and vice versa.
However, traders developed more hedging instruments, to try to benefit form hedging and make profits, not just to compensate for losses.
On this page we will discuss some of the hedging techniques.
The first 100% safe.
This technique is the safest ever, and the most profitable of all hedging techniques while at low risk. This technology uses the arbitrage of interest (rollover rates) between brokers.With this type of coverage you need to use two brokers. Broker, who pays or charges interest at the end of the day, and the other should not charge or pay interest. But in such cases, the seller tries to maximize profits, interest, or in other words, to limit this type of hedging.
The basic idea of ​​this type of hedge is a position of currency X broker who pays you is very interesting from a position is open, and open the back in this position in the same currency X to broker it does not mean to charge interest in commerce. This interest in, or roll over an account to win.
However, there are many factors to consider.
a. The use of currency. To serve the best pair is GBPJPY, because this is the time of writing, interest to your account 24 USD every 1 regular long lot you have. However, you should check broker because each broker credits a different amount. The area is $ 10 to $ 26
b. Non-interest broker. This is the hardest part. Before you open your account, such as broker, you should consider the following: i. Does the broker allow opening of the station for an indefinite period? ii. Are brokers’ fees?
Some brokers charge a flat $ 5 instead of every night and a lot of that is a good thing, even if it does not seem to be. Because if the broker charges of money to keep your position, your broker will probably keep your position indefinitely.
C. Capital Account. Hedging requires a lot of money. For example, if you want to use the GBPJPY, you need to need $ 20,000 for each account. This is very necessary, because the maximum monthly bandwidth GBPJPY last few years was 2,000 points. You do not want to get one of your collateral. Do not forget that if you have two positions open for two-broker, the spread, which is about 16 points to pay one. If you are a regular lot, so this is about 145 USD. To reach the market, losing $ 145. So you need ensimmäinen only six days to cover the costs of enlargement. So if you get a margin again, you will need to close the other position, and then the money to open a new account, and then again at the positions. Whenever this happens, you lose $ 145!
It is very important not to get collateral. This can be a great stock, or a fast and efficient way to transfer money brokers maintained.
d. money management. One of the best ways to manage such an account has a monthly basis to increase profits and balancing your positions. This can be done by dragging over the account to deposit the excess profits and loss account balance into it. However, this can be expensive. You should also check the broker if he allows withdrawals while your position is still open. An effective way to do this is with the brokerage service withdrawals which offers to third parties.


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