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Hedging

XAGUSD REVERSAL FOLLOWING SILVER FUTURES? LONG!Pinging the .38 on the 3h. I do believe that given the state of the S&P and the American political climate, we will continue forward as money flows out of equities and into safe havens. The horizontal lines are where we tested the 180 period MA and we look to have rejected it, for now. Caution : Silver is notoriously manipulated by investment firms / banks / hedge funds. Shakeouts are likely on the way, be wary of the 22 zone. Live long and profit, and best of luck.
OANDA:XAGUSDLong
by Z3R0Matrix
2
3USS long Daily close 3x - investment stockWhat do we see? Fundamental wise buying greed in the US and world markets looking to make a recovery without realising how much stimulus has gone into each country. Technicals - we have a great monthly swing all time low - which has created a great base and imbalance we have targets from the "corona" drop - however we also can see a long opportunity to test this level and beyond. Our imbalance zone is a monthly target and is our weekly. This fund works like 3:1 daily close - so if the market falls -1% - this rises 3% and inverse method of - US market rising 1% , this falls -3% very strong risk reward here - just wait the zone to be broken to generate longs note: check to see if this fund is available in your country If you like our work, leave a comment and like. Thanks. Team Lupa.
LSE:3USSLong
by LupaCapital
XAUUSD HEDGE! SELLSAfternoon all, So here it is! A hedge on XAUUSD as I am in buys! and now it has retraced back to the outer trendline with an indesion candlestick which to me seems like a good idea to short this now!! Hedging is risky!! But I have small SL in place to make sure I dont over board my hedging!"!" Gold remains subdued in a tight short-term trading range as market sentiment continues to swing between risk-on and risk-off. Today’s price action is being held in place by a risk-on move, predicated on further testing of a COVID-19 vaccine, and the continued unwind of lockdown measures. Various vaccines have been mooted in the past and while testing continues, building hope on these drugs may be unwise. The COVID-19 data however continues to improve in nearly all countries and lockdown measures are being wound back accordingly. While this continues, risk-on sentiment will likely prevail, weighing on the price of gold.
OANDA:XAUUSDShort
by theexchangefx
How to Play Crude Oil in the next few daysOil has made quite the move, rallying nearly 330% from the huge wick low of 6.6$ and 150% from its 10.5$ low. Now Oil has formed a ascending triangle. Ascending triangles are a signal of high volatility to come. To play this smart here are some options Long the Ascending triangle with a target of 31-33$ ( roughly 20% up ) and given the prior huge rally higher, its more likely to break to the upside to the 31-33$ range ( roughly 20% move ) and in 3-5 days, we shall see either a big move to the downside or the upside. Fundamentally we have some bullish news with Suadia Arabia pledging to cut an addition 1million BPD and other OPEC members agreeing to cut Short Position On the 4 hour time frame we have bearish divergences on the stochastic RSI and RSI, suggesting potential trend exhaustion and a break to the downside. This is possible since we have rallied quite a bit from lows. That being said divergences can have shortcomings in ranging markets formation as we are. Daily stochastic RSI is also overbought. Despite lockdowns easing, many companies and people are not getting back to there usual traveling routine as much. Domestic Air Travel in the US is still extremely low with states like California NewYork etc still not having much activity with plans to extend the lockdown 2-3 months. Both One can short the 26.5-27 area with a stop loss at 28$, and long the 25.5-26.5$ area. Then if oil hits the bullish target of 31-33$, take profit on 65-70% of the the long and hedge a short at 31-33$ range with a stop at 34$. Keep the rest of the long to ride and buy the dip in case we rally higher
TVC:USOIL
by chartingman43
Hedging bets on energyThere's a lot of action in energy stocks today as Donald Trump announced on Twitter that Saudi Arabia and Russia are closing in on a deal to cut production by 10-15 million barrels per day. This is going to be challenging, since the two countries only produce 23 million barrels per day between them, so they'd have to cut their production in half. Shortly after Trump's tweet, a Russian spokesman announced that in fact no specifics have been discussed, so it seems that Trump's tweet was very premature. Nevertheless, there's some reason to think that Saudi Arabia, at least, will cut production. Last night, Senator Kevin Cramer said he had told Trump that "we should not keep armed forces in Saudi Arabia protecting their oil assets while the Kingdom declares war on our oil producers." In other words, Cramer told Trump to twist the Kingdom's arm by threatening to withdraw US troops amid a rebellion in Yemen and threats from Iran. Assuming that this is, in fact, the strategy Trump is using, I think it's very likely to succeed whether Russia plays ball or not. Here are a couple other bullish signs for energy: the US is addressing the storage shortage by renting out space in the strategic oil reserve to private companies, and crude inventories are falling in China for the first time in months because refineries have reopened there. On the other hand, there are bearish signs too: Rystad Energy predicts a large decrease in energy demand in April, and today's jobless claims report would tend to confirm that. 6 million jobs lost means the economy is in a very bad place, and the weakening of demand may persist long after lockdowns are over. It's hard to resist taking some positions in the energy sector with so many bargain dividends available, such as the nearly 10% dividend on Exxon-Mobil. (And Exxon should have the cash to be able to sustain that dividend even if oil prices remain weak.) However, what if oil prices continue to fall? For that scenario, it's useful to have a hedge. I am hedging my Exxon-Mobil position with an oil tanker stock, specifically Frontline, Ltd. (FRO). Tankers and producers have been moving opposite each other, with tanker stocks gaining when oil prices fall and falling when oil prices rise. That's because weak oil prices lead producers to ship their oil to storage locations, which increases demand for tankers. Frontline has a nearly 20% dividend yield right now, so I should make money from dividends on both sides of this trade, regardless of what happens to prices. I also have a smaller hedge in USO, an ETF that holds physical oil. This is because rising oil prices may not always be good for Exxon-Mobil. What if oil prices rise because big producers like Exxon have cut production? Then both my Exxon stock and my Frontline stock would fall even as physical oil prices rise. So I want to have some physical oil in my portfolio too, to offset the effects of any Exxon-Mobil production cuts. Unfortunately there are no dividends from USO, which is why I have only a small hedge here.
NYSE:XOMLong
by ChristopherCarrollSmith
26
Trading key-levels and how to HEDGE properly (+486 pips)Is it true that the Forex Market is manipulated and controlled by a handful of banks and market makers? If so, how can we identify when they manipulate the forex markets and is it something that requires access to sophisticated tools and secret contacts? Well, let’s begin by getting a few facts straight. Firstly it is true that the forex markets are manipulated and while you don’t need any sophisticated tools or secret contacts to understand how this happens, identifying when it happens is not easy for the majority of retails traders. What most traders fail to appreciate is what the financial markets truly are and how to trade forex properly. The Forex markets is a place where buyers and sellers come together facilitated by brokers and market makers who look to profit by making a commission for each transaction. Just like any other market, buyers and sellers can only come together if there is a middleman facilitating the transaction. This middleman in the case of Forex is the market maker, and their job is simply to match buy and sell orders for the best price possible and earn the most commission that they can on each transaction. How forex works – Buyer & Seller Counterparties Every trade that is executed in the forex markets has to have a buyer and seller and when this takes place then we have a trade. This normally happens in a fraction of a second electronically but in essence, each time you enter a buy trade you are being matched with someone who is happy to enter a sell position and take the opposite side of your trade. If this doesn’t happen then there wouldn’t be a trade. Why is this so important? Because it highlights the problems that large banks have which small traders don’t. Any retail trader is able to place whatever position size they wish into the market without ever fearing slippage or bad fill. Granted slippage may take place during high impact news items such as central bank announcements but on the whole, most of the executed trades are done instantaneously. Now if you’re a retail trader trading 1 standard Lot then you won’t have any problems with being filled at the price you want. Imagine you’re trading 100 Lots or 500 Lots or 1000 lots, these are larger positions to put into the market at any one time and it’s much more difficult to find someone to take the other side of the trade at the exact price and the exact time that you want and therefore might not be filled at a great price. Well, what could you do in such a situation? You have one of three options: Option 1: You could either bite the bullet and get executed at whatever price you are able to get, the only problem here is that you won’t be getting the best price possible for your trade which eats into your profits. Option 2: You could wait for the price to get to the price level you want so that you get the best execution possible and buy or sell at a much more favorable price – this is great but what if the price doesn’t get to the level you want for you to execute your trade? You will either be forced to walk away without making a trade or be forced to take whatever price you can get if doing the trade is absolutely essential Option 3: You force the price to get to the level at which you want to transact by cleverly manipulating other smaller traders to push the market in the direction you want it to go. Once you get the price to the level you want then you can carry out your transaction. How can you do this? By taking massive positions and exercising your muscle. This is similar to when large companies and conglomerates bully smaller businesses out of the market through aggressive competition. Best Options… Which option do market makers and those with large orders take? Option 3. This is how manipulation works in simplicity. The big players who have the money to move the market in the direction they want, do so on a regular basis. What’s more, they have no option but to do this because unless they can manipulate the market then they won’t be able to execute their large orders. Think about it – what causes the price to move up? An imbalance of buy and sell orders such that there are more buy orders than sell orders which means there is more demand for that particular currency pair than there is supply. Conversely, what causes the price to fall – a larger build up of sell orders than buy orders such that supply outstrips demand thereby resulting in price falling. Now if a market maker comes into the market with a massive order to buy a currency, what will happen to the price? It will start to rise. This means that the market maker is bidding the price higher and so forcing himself to keep buying at higher and higher prices until their order is filled. This hardly sounds attractive or even smart for that matter as the market maker is in the business of maximizing their profits. So what is the alternative? The only alternative is to buy or sell in a hidden way without alerting all the other traders as to what is really happening. How does this take place? By buying into selling pressure or selling into buying pressure. In other words, what a market maker will do is do the opposite of what they intend to do in order to push the price to their desired level. What is a market maker? It is a financial intermediary set up with the sole purpose of matching buyers and sellers together to make a commission in the process. So let’s say a large European conglomerate wants to buy out a US company for $10 Billion. It can’t just go to a money exchange bureau or the bank to change that amount of money. Most likely it will go to a currency broker or a large bank who will complete the transaction by going into the money markets via their brokerage arm. Once the market maker receives the order for the transaction, their job is to convert the conglomerate’s money from Euro’s into USD. They will, therefore, be trading the EUR/USD pair and selling Euro’s and buying USD. Since this transaction of selling Euros and buying USD happens instantaneously, what the market maker needs to do is get the highest exchange rate they can for Euros to USD. The way they do this is very important as it affects the amount of commission they stand to make. In this example, it’s in the market maker’s interest to achieve the highest interest rate they can so they do this by driving the exchange rate higher first and then starting to sell the euros against this higher price. They continue to sell just as everyone else is fooled into thinking that price is going to continue higher until eventually they sell all the euros and convert into USD and complete the transaction. What happens now is that since the selling pressure has become stronger than the buying pressure, price starts to fall rapidly and everyone is left scrambling to get out of the trade once they find out that they are wrong. The reason people are left scrambling is that as a result of giving a false signal of the market starting to move up, the market maker manages to entice other traders to start buying heavily. Once the other traders find out that they were wrong in their assessment of market direction, then the main focus becomes to get out of their positions quickly. This is what we call the trap and it happens on a weekly basis in the Forex market. _________________________________________________________________________________________________________________________________________________________________________ No part of this book may be reproduced or used in any manner without written permission of the copyright owners except for the use of quotations in a book review. Any opinions, news, research, analysis, prices, trade discussions, or other information contained on this website are educational in nature and merely provided as a presentation of trading strategies. Commentaries made on this website reflect our own opinions and trading techniques and do not constitute investment advice. All information and material is for educational and entertainment purposes only and is not intended to provide financial advice. *This is not financial advice. I am not a licensed financial advisor. Seek a licensed financial advisor before making any investment decisions. I am not responsible for losses or gains that may or may not occur in the marketplace. Forex carries a high level of risk not suitable for all investors.*
Long
by TayFx
4