What are the benefits of opening two trades using different currency pairs?
July 1st, 2008
tjcsonofallnations asked:
Let’s assume that you use a limit order on both trades of 5 pips. Once one closes you wait for the other to go closer to 0 then reenter the trade. Again set 2 limit orders for 5 pips each. Once this one goes off you will have 10 pips and 1 negative trade left open. At some point you can subtract your closed trades from your open negative trade for a profit. As long as the two currency pairs move in opposite directions you will make money, right?
BRENNEIS
Let’s assume that you use a limit order on both trades of 5 pips. Once one closes you wait for the other to go closer to 0 then reenter the trade. Again set 2 limit orders for 5 pips each. Once this one goes off you will have 10 pips and 1 negative trade left open. At some point you can subtract your closed trades from your open negative trade for a profit. As long as the two currency pairs move in opposite directions you will make money, right?
BRENNEIS
If the two pairs share a common currency, then you may be able to use this to trade a currency pair that doesn’t exist at your dealer. Another advantage might be diversification. What happens if the pairs go in opposite directions? If your long goes down and your short goes up, you lose money twice as fast as being wrong on a single trade.
My forex trading software for this purpose you hedge the lots you can trade for days and blaence your trade for real my forex now make money iin nterest the currency and make money for working.
For living not for this purpose you can trade curency buying different pairs eurusd and blaence your trade for days and usdchf historically these currency go in opposite.