How to pyramid on forex?
Monday, December 2, 2013
, Posted by Ryanita at 11:00 PM
Prince
Hi all!
I wonder,how and when to pyramid as soon as I see that trade is profitable.
Is there any kind of indicator,calculator,tutorial,etc which can help me?
Thanks
Answer
What do you mean by Pyramid? You mean adding on to a position or you mean compounding your account to increase it's size.
For adding on, I don't recommend it unless you are confident with the strength of the trend to drop a little more risk in. It's a good idea to lock in profits of your already profitable position with a +ve stop loss as well.
I don't recommend compounding either, at least until you have withdrawn your profits up till the stage where you have taken your initial capital back so all you are left with is pure profits as risk capital. For instance, you deposited $10k, don't compound until you withdraw at least $10k again. My personal habit is to withdraw some or all of the week's profits on Fridays. After all, aren't we trading to make a profit and reap the benefits of those profits by restocking our bank accounts?
What do you mean by Pyramid? You mean adding on to a position or you mean compounding your account to increase it's size.
For adding on, I don't recommend it unless you are confident with the strength of the trend to drop a little more risk in. It's a good idea to lock in profits of your already profitable position with a +ve stop loss as well.
I don't recommend compounding either, at least until you have withdrawn your profits up till the stage where you have taken your initial capital back so all you are left with is pure profits as risk capital. For instance, you deposited $10k, don't compound until you withdraw at least $10k again. My personal habit is to withdraw some or all of the week's profits on Fridays. After all, aren't we trading to make a profit and reap the benefits of those profits by restocking our bank accounts?
Forex arbitrage how much scope?
Robi da ko
All forex masters this is for you
How much do you think there are arbitrage opportunities (arbs) a day on forex? (in percentages)
Are there any forex arbitrage services?
compare forex arbitrage with sports arbitrage, which do you think should be preferred?
Why?
Thanx
Answer
Forex Arbitrage is an arbitrage among real rates and synthetic cross rates in different local markets.
A one possible way to realize this strategy is to find three brokers having the same clearing firm. Then you should make agreement with this clearing firm on "netting" services. It means that clearing firm will clear (net) your positions across three pairs at specified time using the opening rates. For example, in the example above suppose you had opened the following positions long 100,000 EUR/USD; short 100,000 EUR/GBP; and short 72,310 GBP/USD at 10:00AM and instructed the clearing firm to clear these position at 16:00 PM at the opening rates. The netting/clearing gives the following results: Long EUR from the first pair and short EUR from the second pair gives zero exposure in EUR. Long position in GDP from the second pair and short position from the third pair gives zero exposure in GBP. Short position from the first pair ($118,370) in USD and long position from the third pair ($118,501) in USD gives you $131 profit without open positions and exposures.
The second possible way is to use some agreements (options or swap) to guaranty clearing/netting at these specific rates, which give risk-free arbitrage profit.
I use Forex arbitrage calculator for this. and my target depend from day to day. sometimes we get many opportunities while sometime very less. Also i prefer currency trading and futures as they are more rewarding that arbitrage
Forex Arbitrage is an arbitrage among real rates and synthetic cross rates in different local markets.
A one possible way to realize this strategy is to find three brokers having the same clearing firm. Then you should make agreement with this clearing firm on "netting" services. It means that clearing firm will clear (net) your positions across three pairs at specified time using the opening rates. For example, in the example above suppose you had opened the following positions long 100,000 EUR/USD; short 100,000 EUR/GBP; and short 72,310 GBP/USD at 10:00AM and instructed the clearing firm to clear these position at 16:00 PM at the opening rates. The netting/clearing gives the following results: Long EUR from the first pair and short EUR from the second pair gives zero exposure in EUR. Long position in GDP from the second pair and short position from the third pair gives zero exposure in GBP. Short position from the first pair ($118,370) in USD and long position from the third pair ($118,501) in USD gives you $131 profit without open positions and exposures.
The second possible way is to use some agreements (options or swap) to guaranty clearing/netting at these specific rates, which give risk-free arbitrage profit.
I use Forex arbitrage calculator for this. and my target depend from day to day. sometimes we get many opportunities while sometime very less. Also i prefer currency trading and futures as they are more rewarding that arbitrage
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