Image an scenario where a 1 lot long position is -$100 in profit, and it is hedged with 1 lot short position, locking the profit at -$100.
Say the price moves even lower, and I want to reduce the lost to -$50 while keeping the positions balanced. How can that be done?
I thought one should do a partial close of the losing long position (0.5 lot), and trim the short also 0.5 lots...This reduces volume by half but the amount lost is still kept at -$100.
Is there a way to reduce the amount of money lost, in two opposite positions while keeping them balanced? Step 1: Close 0.5 lots of the losing long position.
Step 2: Close 0.5 lots of the gaining short position
Repeat if necessary to reduce exposure.
NOTE: there is no good way to exit negative lock, so try to avoid.
Step 1: Close 0.5 lots of the losing long position.
Step 2: Close 0.5 lots of the gaining short position
Repeat if necessary to reduce exposure.
NOTE: there is no good way to exit negative lock, so try to avoid.
This is why I did originally, but this approach reduces the volume in half, and keep the full amount of money lost. My intrigue is if there is a way to reduce the amount of money lost by half, while keeping the volume balanced...probably not, but worth asking.
Image an scenario where a 1 lot long position is -$100 in profit, and it is hedged with 1 lot short position, locking the profit at -$100.
Say the price moves even lower, and I want to reduce the lost to -$50 while keeping the positions balanced. How can that be done?
I thought one should do a partial close of the losing long position (0.5 lot), and trim the short also 0.5 lots...This reduces volume by half but the amount lost is still kept at -$100.
Is there a way to reduce the amount of money lost, in two opposite positions while keeping them balanced?
There is no way to reduce the monetary loss without realizing some part of the loss unless the market moves in your favor.
Image an scenario where a 1 lot long position is -$100 in profit, and it is hedged with 1 lot short position, locking the profit at -$100.
Say the price moves even lower, and I want to reduce the lost to -$50 while keeping the positions balanced. How can that be done?
I thought one should do a partial close of the losing long position (0.5 lot), and trim the short also 0.5 lots...This reduces volume by half but the amount lost is still kept at -$100.
Is there a way to reduce the amount of money lost, in two opposite positions while keeping them balanced?- Free trading apps
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Image an scenario where a 1 lot long position is -$100 in profit, and it is hedged with 1 lot short position, locking the profit at -$100.
Say the price moves even lower, and I want to reduce the lost to -$50 while keeping the positions balanced. How can that be done?
I thought one should do a partial close of the losing long position (0.5 lot), and trim the short also 0.5 lots...This reduces volume by half but the amount lost is still kept at -$100.
Is there a way to reduce the amount of money lost, in two opposite positions while keeping them balanced?