To Hedge Or Not Hedge, That Is The Question For Your Forex Robot
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Home Page > Finance > Personal Finance > To Hedge Or Not Hedge, That Is The Question For Your Forex Robot
To Hedge Or Not Hedge, That Is The Question For Your Forex Robot
Posted: Dec 06, 2009 |
You can truly put the odds in your favor by grooming your forex robot to go long and sell short the same pair at the same time, but can every trader legally do this? Unfortunately, the answer is no and let’s take a look at why.
Pack Your Robot’s Bags For England?
Unfortunately, US regulators went and stuck their noses where they didn’t belong and have eliminated hedging for retail traders with accounts with registered US brokers. The National Futures Administration seems to believe that retail traders don’t belong in the forex market and as such haven’t banned hedging for institutions, but either way, this puts your forex robot at a big disadvantage of you’re a US-based trader. So what are your options? You can either trade with a US broker that isn’t registered with the NFA, but don’t worry, the NFA is trying to make sure all forex brokers catering to US clients are registered, so your options are limited there. Or you can transfer your brokerage account to a European or British broker. Think along the lines of going to FXCM UK from the American FXCM version. Your forex robot can get back to hedging by making this account switch.
There Are Some Disadvantages Of Going Offshore
The problem for forex robot is user isn’t just the fact that US regulators have banned hedging, additional problems arise from the fact that you expect you to sit idly by and keep your account with a US broker. If your account is too large, usually a nice problem, and you move it offshore, you can become subject to state taxes and regulations as set by the Commodities Futures Trading Commission (CFTC). In other words, not only do regulators want to impair your forex robot’s ability to make pips for you, they are basically eliminating brokers choices as well by making it punitive to move your account offshore. Sounds like a raw deal for traders and forex robots alike.
Explore Other Options
The bottom line is every trader wants to have as many weapons in his arsenal as possible. Some forex robots have excellent hedging skills and it pays to maximize these benefits to the fullest, so why not take the time to explore some of the more reputable non-US brokers. Your forex robot will be glad you did.
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Francisco Pizarro G. -
About the Author:
Made a career from Forex and left my profession as a Translator almost 4 years ago; since then I work from home in my small office trading the Asiatic markets during night time, where I found a good niche. I am a fan of www.forex-robots.com
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What is the best approach to use forex signal in forex trading? Is this driven by fundamental aspect of trading?
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By:
Francisco Pizarro G.l
Arts & Entertainment>
Humorl
Aug 05, 2010
spam The assassination was followed by an extensive international outcry and led to massive political change in Lebanon, culminating in the withdrawal of Syrian troops after 29 years in the country. The late Hariri opposed t
By:
Francisco Pizarro G.l
Automotive>
Carsl
Aug 05, 2010
Finding The Best Trading Strategies For Your Forex Robot
Forex traders are an independent breed and each one a has a different approach to the forex market. Some are day traders, while others like swing trading. Some traders trade off fundamentals such as news events and economic data while others stick strictly to charts and other technical analysis tools.
By:
Francisco Pizarro G.l
Finance>
Personal Financel
Dec 31, 2009
Can Your Forex Robot Be Successful With A Signal Service?
In the world of products aimed at catching the eye of forex traders with promises of big pips and tons of winning traders, forex robots are certainly king. When you happen upon a forex robot sales page, you’ll notice glitz, glamor and outrageous claims regarding the accuracy of that particular forex robot.
By:
Francisco Pizarro G.l
Finance>
Personal Financel
Dec 31, 2009
Defining Your Risk And That Of Forex Robot
Money management, risk management, whatever you want to call it is what separates the 10% of traders that are successful from the 90% that are frustrated and losing money. A basic definition of risk management is simply the act of keeping your losses small and not taking undue risk in any given trade. An example of a risky trade might be putting half of your account at risk. Another example might be loosening up on your stop-loss rules and incurring a larger loss than your system allows for.
By:
Francisco Pizarro G.l
Finance>
Personal Financel
Dec 31, 2009
Using Pivot Points To Profit With Your Forex Robot
If you’re familiar with the concepts of support and resistance, you may have heard of pivot points. Pivot points expand on the support and resistance theory, giving traders more important price areas to know about when they trade.
By:
Francisco Pizarro G.l
Finance>
Personal Financel
Dec 31, 2009
Are There Too Many Forex Robots In The Market?
That may seem like a funny question and many forex traders aren’t approaching their daily trading routines worried about how many forex robots they have to compete against on a daily basis. When you get down to it, don’t you and your own forex robot have enough to worry about besides thinking about the other forex robots out there?
By:
Francisco Pizarro G.l
Finance>
Personal Financel
Dec 31, 2009
Hey, Yes Your Forex Robot Can Help You Outside Of Automated Trading
If you read enough advertisements, reviews and sales pages for forex robots, you’re probably thinking that the only way a forex robot can help you out is by trading on autopilot. That’s an easy assumption to arrive at. After all, the developers behind forex robots are always touting the ability of their products to make us tons of pips while we’re away from our computers. Go to work, go to sleep, but leave your forex robot on and you can make some pips.
By:
Francisco Pizarro G.l
Finance>
Personal Financel
Dec 31, 2009
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Made a career from Forex and left my profession as a Translator almost 4 years ago; since then I work from home in my small office trading the Asiatic markets during night time, where I found a good niche. I am a fan of www.forex-robots.com



