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Forex Hedging: Stop Paying Away the Spread

13 Years ago | November 26, 2013 1/28/23, 12:00 AM

By Jay Meisler

 

My feelings on forex hedging were presented in this article Why I Hate Hedgingo. With that said it is a popular feature among retail forex traders using the MT4 platform. What many traders seem not to be aware of is that you can close a hedged position without paying an extra spread. I can’t imagine how much money has been lost trying to trade out of a hedge to recapture the spread rather than just closing it out.

Here is a simple way to close it out without paying away the spread.

1)      Click on your long or short position in your MT4 trade window

2)      The close order window will appear

3)      Click on the dropdown menu nextr to Type:

4)      Choose Close by

5)      The opposite side of your trade (i.e. long or short) will appear. Click on the close link to close the trade, whiuch will nbet it out without paying away an the spread.

Traders who hedge are often lulled into thinking they have two separate positions that they need to trade out of when they actually have no net position. I have shown you a way to close out a hedged trade without paying away the spread.

 

 

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