Forex trading, some say it’s simple but for others it’s really complicated. In reality, this is actually what a trader wants it to be. Most traders are on the quest of finding an accurate Forex trading system that has great results, but it is not that simple. Let’s have a quick tour of some advanced Forex trading strategies here.
Hedging: It is where both sides of a trade are considered at once. The trader here initiates the long and short position on the same currency pair. Some experienced traders use two different currency pairs to make one hedge, which can turn very complicated.
Position Trading: This is based on the by and large revelation of a trader to a currency pair. Here, the position is the average price of that currency pair.
Forex Options: This is an agreement, where the trader purchases a currency pair at a predefined price on a predetermined time. This option profit can make up for some loss on the chosen currency pair, if it trades in the unexpected direction.
Scalping: The trader here makes a very short term trade using high leverage for only a few pips. This is best performed in collaboration with a news release and supportive technical conditions. The trading session here can span a few seconds to even a few hours. Considered as a risky strategy, it does not give the anticipated payouts when compared to the risk it carries. Instead of using this as a primary trading technique, traders must use the same in collaboration with the overall trading positions.
Forex Position Trading: This is a hassle free technique to enhance the position size of a trade, but without adding to the risk factor. The trading is effective in mini sizes. The market exposure is less and thus the need to monitor the market continuously is erased. Traders can add to the trading confidence by making use of this technique that can help in earning profit and minimizing losses.
The Bottom Line: Advanced Forex trading can help in earning profits and controlling losses, but the key lies in risk management, and following extreme caution while using these. This can help traders in acquiring an edge among other fellow traders.