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How is it possible that being an account Hedge, the Equity decreases?

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atlanta5812
76
atlanta5812  

This is real situation that I encounter, I’ve got several trades GBPUSD (MT4)  in 100% Hedge and every day I’ve got minus Equity, …. ???

 It’s possible to reach zero and lost the account?


How is possible to happens, normally with hedge we can stay invariably for long time??


Someone could be help me…

Stuart Browne
5900
Stuart Browne  
atlanta5812:

This is real situation that I encounter, I’ve got several trades GBPUSD (MT4)  in 100% Hedge and every day I’ve got minus Equity, …. ???

 It’s possible to reach zero and lost the account?


How is possible to happens, normally with hedge we can stay invariably for long time??


Someone could be help me…

Short swap is much larger than the long swap so any hedge will always produce negative result. So yes, after awhile you will reach zero account balance.
atlanta5812
76
atlanta5812  
Filter:
Short swap is much larger than the long swap so any hedge will always produce negative result. So yes, after awhile you will reach zero account balance.

Thanks for your kindly answer.

I’ve got a short swap in GBPUSD -1.77$/lot/day and -0.51$/lot/day, isn’t very large.  

But my Equity decrease the last days very quickly :

·         13/01: 8.534$

·         15/01 : 8.348$

·         19/01: 7.275$

·         21/01 : 7.278$

·         22/01: 6.149$

·         23/01: 5.331$

·         26/01: 5.381$

Hedge Trades :

1)      GBPUSD BUY  Size 1.60L / 1.71581

2)      GBPUSD BUY  Size 1.00L / 1.67387

There may be another reason?

Alain Verleyen
Moderator
31202
Alain Verleyen  
This is not a hedge, you have 2 buys on GBPUSD.
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