Thursday, December 15, 2011

What are the benefits of opening two trades using different currency pairs?

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?|||I trade curency buying 2 different pairs EUR/USD and USD/CHF. Historically these currency go in opposite direction. So you hedge the currency and blaence your trade. Withoutusing STOP LOSE and you can trade for days and make money iin nterest the lots you own. I USE A VERY UNIQUE SOFTWARE for this purpose. You can trade forex without loosing a dime. Take free trial and become a professional trader in about 2 hours of video traing.





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LIFE IS FOR LIVING - NOT FOR WORKING|||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.

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