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Hedging broker

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Steven Van Ingelgem
836
Steven Van Ingelgem 2014.05.17 07:06 

Hi,

 

Does anyone know of a broker which allows portfolio hedging?

I know of a few who allow for example long & short EURUSD with the same volume to have no margin requirements. But I've yet to find one which allows full hedging.
For example 1 lot long EURUSD, 1 lot long USDJPY, 1 lot short EURJPY to have nearly no margin requirements.

 

Can someone help me there?

Thanks! 

ryad wardeh
373
ryad wardeh 2014.05.17 15:44  

Hi,

I don't think any broker using MT platform will consider your example of a full hedge because each transaction is a trade on its own (different ticket numbers). margin is paid per currency pair, and not per base or quoted currency.

unlike banks accounting methods that separate each currency in a single book, (debit for short & credit for long), if your trading with a bank you wont have any position as the short eurjpy will close your positions in eurusd and usdjpy.

Jinsong Zhang
15754
Jinsong Zhang 2014.05.18 16:33  
svaningelgem:

Hi,

 

Does anyone know of a broker which allows portfolio hedging?

I know of a few who allow for example long & short EURUSD with the same volume to have no margin requirements. But I've yet to find one which allows full hedging.
For example 1 lot long EURUSD, 1 lot long USDJPY, 1 lot short EURJPY to have nearly no margin requirements.

 

Can someone help me there?

Thanks! 

I know something about Triangular Arbitrage but could you share your strategy? Thx
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