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Forex Brokers for Hedging

 

  • What Is Hedging?
    • Hedging means trading both directions(holding both long & short positions) simultaniously on the same currency pair.
    • e.g. a trader can long 5 lots of EUR/USD, and then decide to hedge part of his position by shorting 4 lots of EUR/USD. If the market move against him, his gain on the shorting position will offset the part of the loss on the long position.
    • Note: All forex brokers regulated in US do not allow hedging according rule of NFA(US). For US traders, one possible way to hedge is to trade with two brokers.(Long on one broker, and short on the other on at the same time)
  • Why Hedging?
    • It can be used by traders or some trading robots to offset risk.
    • Depending on the trading strategy, hedging can be useful during very volatile trading periods (for example,during new announcements), because price can spike in either direction very fast,which make it very risky to trade.
  •  Note:
    • Forex brokers regulated by NFA from United States do not allow hedging for US traders.
    • Almost all other forex brokers allow hedging.

InstaForex

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Company: InstaTrade LLC; InstaTrade Investment Company Ltd.   Warning:January 13, 2015:  French AMF published a updated list of forex brokers that offer forex trading service in France without authorisation of AMF.  InstaForex is on the list.   June 9, 2014:  The Ontario Securities Commission warned against InstaForex, because  instaforex “is not registered to engage in the business of (i) trading in securities or (ii) […] Continue Reading →

TradingBanks

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Company: Grizzly Limited Warning: This Broker is not regulated . DECEMBER 1, 2015 · Belize’s IFSC warns against unauthorized Forex broker TradingBanksWARNING NOTICE AND CEASE AND DESIST ORDER  TradingBanks It has come to the notice of the International Financial Services Commission of Belize (IFSC) that an entity calling itself“TradingBanks” claims to be a brand owned and operated by one of our […] Continue Reading →

Dukascopy Bank SA

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Company: Dukascopy Trading Technologies Corp. Note: Dukascopy Bank SA (In Switzerland) is regulated by the Swiss Financial Market Supervisory Authority FINMA both as a bank and a securities dealer.   Dukascopy Europe(in Latvia) is not regulated as a bank or a securities dealer  and is not regulated by FINMA.    Continue Reading →

Finexo

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Company: Safecap Investments Ltd. Note:  2015-7-2:  Cysec fined Safecap Investments Ltd €168,000 “The Cyprus Securities and Exchange Commission (the “CySEC”) would like to inform the public that, at the meetings held on the 2nd March 2015 and on the 25th May 2015, decided to impose the total administrative fines of €168.000 to CIF Safecap Investments Ltd (‘’the Company’) for […] Continue Reading →