What Is a Forex Robot and Do I Need One?

  • Fri 12th Jan 2018 - 5:23am
    Some traders actually trade the same Bitcoin Pro App Review currency pair more than once. A trader will establish a long position in the EURUSD for instance. The trader may then establish a short position in the EURUSD also. Traders using methods such as these anticipate that the EURUSD may not immediately go in their direction. They realize that they may be able to grab 10, 20, or 30 pips from selling the EURUSD before the market goes in their direction. If the trader is able to grab a 30 pip profit on the downside before the market goes up they have just added 30 pips to their bottom line. If the trader is able to grab a 30 pip profit on the downside and the market continues downward they have effectively offset their total loss by 30 pips. Keep in mind that trading regulations change and that this particular type of hedging strategy may or may not be allowed in the future. It is very common for traders to hedge using 2 or more different Forex pairs. To do this requires knowledge of the correlations between the currency pairs involved. "Correlation" is just another way to say, "co relation" or how the currency pairs relate to each other. For instance, does one currency pair's price consistently go up when another currency pair's price consistently goes down? Those 2 currency pairs could be said to have a strong correlation. Once you know the correlation between the currency pairs you can then construct and effective hedging strategy.

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