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Thread: Does your broker allow hedging?

  1. #1
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    Does your broker allow hedging?

    Not all brokers allow hedging so be careful about broker selection. FXOpulence is a trading-genial broker allowing traders with a wide range of trading facilities including high leverage, narrow trading spread, fast trade execution, high security of funding and they allow a number of payment solutions including crypto.

  2. #2
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    Yes, my broker fxopen allows hedging. At the same time, it provides minimal spreads and commissions, which allows you to earn more in each individual transaction.
    opened an ECN account with FXOpen

  3. #3
    Senior Member FXOpentrading's Avatar
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    Now I rarely use hedging strategies when trading at FXOpen, in my opinion, hedging is not the right way to make an account grow, because for every buy and sell on one pair will be charged a transaction fee from the broker's spread. Indeed, as long as the hedging position is active, the floating loss will remain the same wherever the price goes. However, the most challenging problem is when to open a lock hedging position. Now I prefer fixed stop loss.
    I trade at FXOpen

  4. #4
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    Quote Originally Posted by FXOpentrading View Post
    Now I rarely use hedging strategies when trading at FXOpen, in my opinion, hedging is not the right way to make an account grow, because for every buy and sell on one pair will be charged a transaction fee from the broker's spread. Indeed, as long as the hedging position is active, the floating loss will remain the same wherever the price goes. However, the most challenging problem is when to open a lock hedging position. Now I prefer fixed stop loss.
    I also trade with Fxopen. The problem is that many people use such locks because they are afraid of losses. At the same time, the loss, as you said, remains floating. And if a trader cannot find more accurate entries into the market and constantly uses locks, then he will not find the correct and accurate exit from the lock, thus only increasing his loss on these multidirectional transactions.
    opened an ECN account with FXOpen

  5. #5
    Senior Member FXOpentrading's Avatar
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    Quote Originally Posted by Fin_Trader View Post
    I also trade with Fxopen. The problem is that many people use such locks because they are afraid of losses. At the same time, the loss, as you said, remains floating. And if a trader cannot find more accurate entries into the market and constantly uses locks, then he will not find the correct and accurate exit from the lock, thus only increasing his loss on these multidirectional transactions.
    This is the problem that most often occurs when using a hedging lock, finding an accurate exit from the lock can sometimes be biased due to dynamic volatility, once the hedging lock is opened, one trading position is still floating, of course, after opening the hedging lock we hope that the price trend will match the stated position floating, but often actually goes against the position and adds to the list of losses. Maybe if the trader is patient, he can wait until the price is actually in a solid support or resistance zone. However, holding orders for days or weeks will incur swap fees if you use a non-Islamic account
    I trade at FXOpen

  6. #6
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    Quote Originally Posted by FXOpentrading View Post
    Maybe if the trader is patient, he can wait until the price is actually in a solid support or resistance zone.
    Yes, the problem is that many traders do not know how to wait to see confirmation of a strong support or resistance level. But from this level only a small correction may occur and the price will again go against the remaining order, driving the deposit into an even greater minus. Therefore, using hedging in trading is not so simple and profitable.
    opened an ECN account with FXOpen

  7. #7
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    Hedging in Forex involves opening a position to offset the risk of another position, thus reducing potential losses. Traders use hedging to protect against adverse price movements, particularly in volatile markets. It's a strategy to manage risk rather than aiming for profit from both positions simultaneously. I can successfully hedge with LQDFX broker without facing any technical issues like dealing desk, requotes and slippage.

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