Hedging

The forward collar is a trade-off strategy where you give up some gains to limit losses. It's useful if you expect an asset to stay range bound.

Trading without stop losses might sound like the riskiest thing there is. A bit like going mountaineering without safety gear. But what's the reality?

The carry trade has a simple aim: Borrow low and lend high. Japanese yen is often the borrowed currency in carry trades. This is because it’s cheap.

With higher than normal volatility in most financial markets at the moment, it's worth reviewing your risk controls and money management. Here are 7 easy tips that will help to lower risk when trading foreign exchange and any other market.

When used correctly, leverage can help you to achieve much bigger returns than you’d normally be able to with your own money. As with all things, leverage needs to be used carefully and in moderation.

If you find yourself repeating the same trades day-in and day-out – and a lot of active traders do this at some point – you may be left searching for more. If these repetitive trades are consistently losing you money or just breaking even, why then wouldn’t you want to search for strategies with better outcomes?

When traders talk about hedging, what they often mean is that they want to limit losses but still keep the potential to make profits. Of course having such an idealized outcome has a hefty price.

Forex arbitrage is a bit like picking pennies. The opportunities are very small. To be profitable an arbitrage strategy has to do it big or do it often.

What is grid trading? The basic idea is very straightforward. Instead of placing one trade, we place multiple trades forming a grid pattern.