Question on Hedging - page 6

 
FXBabe:
Hi,

Im trying to understand what hedging is. Is this it:

take for example company A and company B.

These two companies are in negative correlation. so when A goes up B goes down.

So suppose theres a news, share price of company A goes up but the news does not effect company B that much (so it goes down not as much), so then we make money, because gain in long position on company A is greater than the loss in short position in company B.

Similarly, if its a bad news for company A, then company A will go down little but company B will shoot down much more. So gain in company B is greater than loss in Company A.

Do any corrency pairs work in this way?

EUR/USD and USD/CHF...about 100% correlation on a daily chart...

 

Safely earning interest through fully hedged arbitrage

Hi,

If you guys are really interested in making safe, fully hedged arbitrage investments you should check out Safe FX We make our money off of the interest rate gap not from trading and everything is fully hedged so you don't get killed when the carry trade collapses. We can make about 5% a month this way with interest rates where they are and it's safe.

 
mycode:
EUR/USD and USD/CHF...about 100% correlation on a daily chart...

EUR/USD and USD/EUR are 100% correlated all the time

 

We need a lot of deposit to do that..

 
Hi,

If you guys are really interested in making safe, fully hedged arbitrage investments you should check out Safe FX We make our money off of the interest rate gap not from trading and everything is fully hedged so you don't get killed when the carry trade collapses. We can make about 5% a month this way with interest rates where they are and it's safe.

Can you give an overview of how this done for someone that prefers to manage their own funds?

 

Using hedge trade as a stop loss

Is there any system, ideas on placing a stop order as a hedge if your market order moves against you?

Like ( X) number of pips against you , you would have a hedge traded open in the opposite

Direction,

 

Moved your post to this thread.

All the links on our forum related to this subject.

Some links are from elite section sorry.

Hedge EAs/Tools:

- HedgExpert_v1. Original thread, idea, version #1.

- HedgeEA: good public thread with EAs and instruction in pdf file.

- Hedge: elite section thread with discussion and EAs.

- 10point3 Hedge is here.

- SMA MultiHedge is here.

- HedgeHog System & EA is here.

- script that hedge positions at the same time/level is here.

- HedgeMulti EA is here.

Hedge Discussion

- Interesting discussion about Hedge Calculation.

- Hedge-ring/triangular/basket.

- Question on Hedging.

Hedge Trading Systems:

- MA over Equity-Indicator for Hedge Trading.

- Low-Risk Hedge (Arbitrage) Trading Methodology.

- 100% hedging system with two brokers.

- simple hedging system.

 
sjerar:
EUR/USD and USD/EUR are 100% correlated all the time

LOL, nice one.

 

what is the meaning of "hedge trading"

Dear friends;

could you please tell me what is the meaning of "hedge trading"

 
ztdep:
Dear friends; could you please tell me what is the meaning of "hedge trading"

Answers:

Hedge (finance - Wikipedia, the free encyclopedia)

Hedge

Reason: