Why Hedging your positions ?

[BillHuppert]

do you follow @BillHuppert ?

Yes thanks, I understand that. Thanks for your detailed explanation.

My point was much simpler though.
Why does the MT4 terminal show 2 open positions when in fact there are none?
Surely in the scenario mentioned it should just close out the long position when you take the equal and opposite short position.

[spamme]

Metatrader 4 is for broker not for traders
Brokers earn easy money on news traders ....

Yes thanks, I understand that. Thanks for your detailed explanation.

My point was much simpler though.
Why does the MT4 terminal show 2 open positions when in fact there are none?
Surely in the scenario mentioned it should just close out the long position when you take the equal and opposite short position.

[Tony Darvall]

Hedging is useful when your short term view if different from your long term view.

You create real profits and losses with the hedges trades and there is a swap spread paid for the privilege.

If you find yourself hedging more than 20% of your trades you probably over-hedging.

If you can not close a trade that is going against you then a hedge is better than nothing.

New traders sometimes it the only way to stop a loss because psychologically it is much easier to do than closing.

Cheers

TA

[spamme]

Experts makes huge profits by hedging their position and holding it for a long time. But this strategy is totally Not suitable for new traders who don't have enough experiences. Traders should understand this strategy properly to move towards it. xxxxxxx has removed all restrictions on trading techniques. So you can use Hedging Strategy with this broker so easily.

@tamzid92 stop spam threads. That show only how bad your broker is .... Good brokers do not need to spam .... ( Even if you write fake posts )