The support for selling forex system in C2 is far from my satisfaction.
Why C2 does not support hedge order for forex system? Hedging is a very popular and useful technique in forex trading.
Buying 1 lot of EURUSD and selling 1 lot of EURUSD at the same time is not mathematically the same (not equal to flat position) - it’s called a hedge
Credit swap and Debit swap interest are not the same - this is the income for forex broker and big banks. For cross or exotic pair, the swap spread can be very large (> 3pips). Try going open a hedge position like that and hold for a week, you’ll own the broker money called “swap interest”.
I bought the C2MT4 API from an 3rd party developer (Duncan) and use my Metratrader 4 to send send sell order on EURJPY but C2 rejects it because it says there is another open buy order for EURJPY.
I tried to troubleshoot the issue further and C2 returns the message “Listing Fee is required”…#$%$#%
My Metatrader EA uses hedge order heavily and it seems I need to give up at this point.
What you call “hedging” has been discussed so many times on this forum… Please read what has been written about it. You can call it whatever you want, but it is mathematically the same as being flat. Popularity of a belief doesn’t make it true.
"Buying 1 lot of EURUSD and selling 1 lot of EURUSD at the same time is not mathematically the same (not equal to flat position) - it’s called a hedge "
NON-HEDGE examples:
1) Let us try your experiment. A man goes long one contract of Wheat. He then goes short one contract of Wheat. What do you think his broker statement will reflect? A long and a short? or flat?
2) A woman has an empty purse. She earns a Euro. She then spends a Euro. How many Euros are in her purse?
You need to retake math. This is what a newbie believes, and what uininformed vendors say when trying to impress newbie traders, when they really have no idea what they are doing or saying.
HEDGE EXAMPLES
a) A hedge is when Southwest Airlines structures fuel derivatives into the future, so they know what their cost of business will be.
b) A hedge is when someone has $C 500,000 in 30 carefully selected stocks. He will be out of town 4 weeks and worries about his portfolio and the economy. So he goes short an equivalent amount of futures contracts, effectively locking in his position so he does not have to worry much while he is gone.
SUMMATON:
— you can look like an uninformed, uneducated, newbie trader/vendor,
OR
— you can accept that you have no idea what you are talking about, no matter how many other uninformed people support you.
LOL! I laughed with the woman and the purse example.
Another example of true hedging is buying stocks and put options. In case the stock plummets, you’re protected. As a trade-off, the stock has to rise more for you to make a profit, because you have to cover the premium of the options.
After examining his first system "Show Me The Money" which plunged immediately after opening and was killed off to start another…
… I can guess as to the financial knowledge and trading ability of the vendor.
So I will then ask. Your hedge example is not Flat? Then "Show Me The Money" !!!
lol
Dennis -
NFA compliance rule 2-43, which went into effect Aug 1, "eliminates the practice of allowing a customer to hold long and short positions in the same currency pair at the same time."
Source: Futures Magazine, August 2009, page 11 "New Forex Rules"
does the new rule apply to futures also?
I don’t think this sort of thing was even a possibility in futures. If you are long, and add a short position, you are flat in futures.
But the rule itself I believe is targeting forex platforms.
Good rule. It basically ends a scam. I suppose that the next step is that forex brokers talk their clients into "hedging" via triples like long EUR/USD, short EUR/JPY, long USD/JPY, so that they can ask even more interest for borrowing fairy tale money. Or is there a rule against that too?
That is excellent news, hopefully that will kill this absurd argument once and for all.
amen
The funny thing, for them to HAVE to make a rule specifically prohibiting it, tells you how popular the practice was. Obviously, a lot of people liked being long and short at the same time.
I missed the boat on that whole concept.
Yes, it is amazing. The broker offered you to borrow their money with a certain interest rate, after which they borrowed the same money back with a lower rate. Well, I can see why they tried to talk their clients into this.
