DD Doubt

 

Hey, guys!

Considering a USD 1,000 account, what would be my DD if I open a long position and a short position at the same time?

For example, if my long position (USD/CAD) is +100 USD and my short position (EUR/USD) is -150 USD, what would be my DD? 5% or 15%?

 
Asarov16:

Hey, guys!

Considering a USD 1,000 account, what would be my DD if I open a long position and a short position at the same time?

For example, if my long position (USD/CAD) is +100 USD and my short position (EUR/USD) is -150 USD, what would be my DD? 5% or 15%?

5%

 
Asarov16:

Hey, guys!

Considering a USD 1,000 account, what would be my DD if I open a long position and a short position at the same time?

For example, if my long position (USD/CAD) is +100 USD and my short position (EUR/USD) is -150 USD, what would be my DD? 5% or 15%?

100. You should consider a USD 100 account.

 
Since 2009, hedging is not permitted for US traders.
          NFA Enforces FIFO Rule, Bans Forex Hedging in US Forex Accounts - Trading Heroes
           FAQ: FIFO in the Forex Market - BabyPips.com
 
Eleni Anna Branou:

5%

Thanks, Eleni!