Asking for advice from knowledgeable people. About hedging to avoid MS
Where is everybody?
No Prival, no Leo, no Math... Everyone's gone somewhere... You're moping around and there's no one to talk to... not even... :))
What the hell, what's wrong with this one? What's not clear?
In a word, look - you have understood that you made a mistake when you sold - and in 200 points up the margin call is waiting for you. What to do, you can open a meeting with the same volume and wait a week or even a couple of days. This is a good scenario in general words ... What's the best way to do it step by step? In my experience, the best thing is to immediately add money to the trading account. And there is no need for any meetings, because you have to close them anyway... And where and when ... In a word. This hedging is rubbish. But I want to get into it scientifically, so to speak. >> yeah.
What the hell, what's wrong with this one? What's not clear?
In a word, look - you have understood that you made a mistake when you sold - and in 200 points up the margin call is waiting for you. What to do, you can open a meeting with the same volume and wait a week or even a couple of days. This is a good scenario in general words ... What's the best way to do it step by step? In my experience, the best thing is to immediately add money to the trading account. And there is no need for any meetings, because you have to close them anyway... And where and when ... In short. This hedging is rubbish. But I want to get into it scientifically, so to speak. Yeah?
The best thing in that case is to close and go for a rest.
Where and when - as usual, where you would open a position there to close the opposing one.
Pouring money into an account is for kamikazes!
In a word, look - you have understood that you made a mistake when you sold, and in 200 points up the margin call is waiting for you. What to do, you can open at the same volume and wait a week or even a couple of days. This is a good scenario in general words ... What's the best way to do it step by step? In my experience, the best thing is to immediately add money to the trading account. And there is no need for any meetings, because you have to close them anyway... And where and when ... In short. This hedging is rubbish. But I want to get into it scientifically, so to speak. Yeah?
Of course in Russia and in small depots you can use all sorts of WM, but this is a very special case. If there is a position with the same volume, it is not a hedge, it is a lock, mathematically speaking, equivalent to closing a position. If up to 200 points are left to MC, this means gross violations of MM and the deposit will certainly be drained, and it is already too late to hedge, because there is not enough margin to open a position with another instrument. If we are talking about "correct" hedging, then for example I do it this way, either immediately open two "opposite positions" on decently correlated symbols, estimating their potential to give me a positive difference with an acceptable drawdown or just a pending position on another instrument that will work for us in an unfavorable market movement. In general Forex hedging is very limited, other markets provide more interesting possibilities for hedging IMHO.
Naturally, you have to close - fix the loss.
As you say - it is a loss, it is not a hedge.
In finance, a hedge is a position established in one market in an attempt to offset exposure to the price risk of an equal but opposite obligation or position in another market - usually, but not always, in the context of one's commercial activity.
Filling the dough is not an option, money transfer can take up to 5 days, of course in Russia and with a small depot you can use all sorts of WM, but this is a very special case. The opposite position of the same volume, it is not a hedge, it is a lock, mathematically equivalent to closing a position. If up to 200 points are left to MC, this means gross violations of MM and the deposit will certainly be drained, and it is too late to hedge, because there is not enough margin to open a position with another instrument. If we are talking about "correct" hedging, then for example I do it this way, either immediately open two "opposite positions" on decently correlated symbols evaluating their potential to give me a positive difference with an acceptable drawdown, or just the first position is hedged with a pending order for another instrument, which will work for us when the market moves unfavorably. In general, the Forex hedging is too small, other RF markets provide more interesting possibilities for hedging.
Ok, let it be "lock" :))
Suppose (let's say) we will be able to add money quickly - a couple of hours.
Suppose we have enough margin for a lock.
200 points may be added in a day. Suppose you withdraw 200 points on the first day and you have another 200 points left before the MC. What to do?
Close and think about what to do to prevent this from happening next time). Opening such positions is unacceptable. You did not mention hedging for nothing. You may use hedging or partially hedging in case of small depo, but it is often the only way to make profitable trading.
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Hi all.
I'm probably just dumb, but I still can't think of a scheme to hedge to avoid a margin call and come out of the situation better than at the time of the decision? I don't know how to do it. I am tormented by this gap in my education for a very long time ... But nothing comes to mind.
Here's a drawing so that you can communicate more easily...