Question about Hedging Forex - Help Needed (Page 3) - Currency Futures | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > Currency Futures

Question about Hedging Forex - Help Needed
Started:December 29th, 2015 (07:56 PM) by excite2 Views / Replies:1,630 / 21
Last Reply:January 5th, 2016 (09:42 AM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Question about Hedging Forex - Help Needed

Old December 31st, 2015, 09:56 PM   #21 (permalink)
Trading Apprentice
new york
Futures Experience: Advanced
Platform: ninjatrader
Posts: 13 since Jun 2010
Thanks: 0 given, 0 received

Thanks everyone for all of your help and for taking the time to thoroughly respond. Because I never hedge, I just needed practical advice on the QUALITY and EFFICIENCY of each hedging method. Even though I never hedge, I am well aware of all of the pros and cons of hedging strategies/methods that people have used to try and eek out a profit that never work, or are marginally successful (triangular arbitrage, carry trades, etc). I am not hedging for any of those reasons... These last few responses have explained exactly what I needed to know. Thanks for all of your help.

And to answer Macroninja's question I am trying to find the most efficient way to remain 100% delta neutral in my forex position without the problems associated with having to constantly re-balance the deltas of futures options to remain delta neutral. I simply want to place a hedge and have it protect my position 100% on a 1 to 1 ratio, less any associated fees. I understand all the fees, swaps, spreads, etc, that are associated but those costs are insignificant for what I'm doing. Thanks again!

Last edited by excite2; December 31st, 2015 at 11:53 PM.
Reply With Quote

Old January 5th, 2016, 09:42 AM   #22 (permalink)
Trading Apprentice
Long Island, NY
Futures Experience: Advanced
Platform: TOS, OX
Broker/Data: TOS, OX
Favorite Futures: ES, TF,, ZB, ZN, 6A, 6B, 6C, 6E, 6J, 6N, CL, NG, GC, SI, HG, ZS, ZW, ZC, CC, SB, KC, CT
Posts: 19 since Jul 2014
Thanks: 0 given, 10 received

excite2 View Post
I am a trader from the U.S. and since no forex hedging is allowed in the U.S. I would like to know if there is a way to create a hedge for any spot forex currency pairs that is hedged 100%? I only know of 3 possible ways, but I have not tried them so I was wondering how effective they are?

1. I could hedge with futures, 2. with options on futures, or 3. with 2 other currency pairs to create a synthetic pair. But what I need to know is if these approaches hedge my position on a 1 to 1 ratio, where the hedge is perfect? I'm not sure if the futures move 100% in tandem with the spot pair, and with options I have to worry about the delta changing as price moves, and with the synthetic pairs, I'm not sure how strongly it hedges. Any help would be GREATLY appreciated! Thanks.

The "no forex hedging in the US" is a joke. What is considered hedging under this rule is not hedging. It's simply an accounting question using FIFO. You can have accounts at different brokers to get around this, if it's an issue for you.

But hedging would would really be more like a ratio write of options, or spreads, or other strategies that partially offset risk. There is no problem to do these.

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > Currency Futures > Question about Hedging Forex - Help Needed

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Quick question for the newbie Forex scalpers Trankuility Currency Futures 9 May 8th, 2015 05:25 AM
Forex/futures Statistic Question alchemist74 Currency Futures 2 April 19th, 2013 10:36 AM
Free forex data question patbateman The Elite Circle 4 September 7th, 2012 01:11 AM
Newbie Question about Forex jra_020883 Beginners and Introductions 5 March 8th, 2010 06:05 PM
The question I asked my self today about Forex roonius Traders Hideout 5 January 13th, 2010 12:13 PM

All times are GMT -4. The time now is 04:34 AM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-28 in 0.07 seconds with 19 queries on phoenix via your IP