Thursday, August 11, 2011

Forex Trading-Noncommercial-directional

Non-directional trading is fascinating. You know, the idea of ​​being able to make money no matter witch way the market goes. That sounds wonderful! Money that would have to do anything.

Options Trading has its own version of it. It is called delta-neutral trading. The funny thing. It never seems quite right.

Forex Trading Pip

It 'the same in return. There is a catch. (Dang, you just knew there had to be!) The problem of non-directional trading with Forex, it is not clear about a defined edgeon the market. You could end up in a safety circuit (it is always negative seeds in a circuit of safety).

That's the theory. Yet, many people do it and do it successfully. Let me give you the bare bones approach here. You decide.

Enter the market (say, to buy). If the market moves 15 pips the way you go. This is your gain.

On the other hand, let's say you bought, but the market for 15 pips. Now you do not have to leave, putting in a hedge. If 'Market continued to fall, near the hedge at a profit and the work of the purchase order to break even negative, and finally too much.

Now the problem occurs if the price does not allow us to tightly secure the order. We may need rehedge. Now we have the distribution paid three times more than there are negative 30 pips.

This is how it works, non-directional trading. Of course (in theory) no matter which direction the market goes, but this does not mean that there is no risk.

Forex Trading-Noncommercial-directional

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