Cara Melakukan 'Hedging' Pada Money Market

AT 8:00 AM

1. EUR/USD trades at 1.3148/50 3. Client SELLS 5 Lots of EUR/USD at 1.3148

2. Client BUYS 5 Lots of EUR/USD at 1.3150 4. Total Open Positions: 10 lots




AT 8:45 AM
1. EUR/USD rises to 1.3200/1.3202 3. Takes 50 Pip Profit On Trade

2. Client Closes 5 lots, Exits (BUY) Position at 1.3200 4. Total Open Positions: 5 Lots


AT 3:00 PM
1. EUR/USD falls to 1.3100/02 3. Take 46 Pips On Trade

2. Client Closes 5 Lots, Exits (SELL) Position 1.3102






How Does Hedging Work?

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1. How do I hedge a position on the FX Trading Station?
Hedging a position is as simple as creating an opposing order of the same amount. You can hedge a current position with a Market or Entry order. Placing an order in the opposite direction of your existing position will establish a second ticket.

2. When should I use the hedging feature?
The most effective way to trade a market in which you are not sure if it will continue in the same direction or reverse is to find concrete support and resistance levels.

Trading in such a price environment involves isolating currencies that are trading sideways in ranges (or channels), and then selling at the top and buying at the bottom of the channel. This allows you to pinpoint levels where significant price action will take place.

Currencies that tend to trade sideways are often currencies with low interest rate differentials such as the EUR/CHF and the EUR/GBP.

3. Do I limit my risk by hedging?
Hedged positions do not necessarily limit risk as traders can find themselves losing on both sides of the trade. Hedging a position temporarily locks in the floating profit or loss on an existing position.

While this strategy tends to work temporarily in range markets, it does not work well in trending markets. FXCM advises that you place stop-loss orders on your positions to properly mitigate risk.

Be advised that a hedged position does not prevent a margin call. You may still receive a margin call in the event that spreads widen out.

4. How do I close a position with the new hedging feature?
A position can still be closed with a stop-loss order, a limit order, or by left-clicking on the close price in the Open Positions window. You can also close a trade by left-clicking on the ticket number that you would like to close, then clicking the close button at the top of the trading station.

5. How do I set up my account to hedge?
The hedging feature is automatically enabled on all No Dealing Desk Accounts opened after February 17, 2007, with the exception of Japanese yen denominated-accounts. Please contact admin@fxcm.com if you want to disable this feature on a live account.

6. If I have No Dealing Desk, will it default to the hedging setting?
For clients on the No Dealing Desk system, the hedging feature is a default option on certain account types and servers. Please contact us at 888-503-6739 for more information.

7. What is the cost to hedge?
The cost to hedge is the additional bid/ask spread.

8. What is the margin requirement for maintaining a hedged position?
The margin requirement on the initial trade will be the standard required margin for trades on your account. For hedged positions, once the second leg of the trade is added, the margin requirement will be divided among the two positions.

Usable margin for both the long and short position is required to establish a hedged position. As soon as the hedge is established, margin will only be required for one side of the position.