08-11-2016 03:24 PM
The margin is £640 and my balance is £1500.
Can I also go short on Gold (dec) £50 per point in the chance that the market moves the other way?
As my balance is on only £1500 it will be down to £840 once I place a short at £50pp.
Would the funds from the gaining position add to the available balance and stop my account from closing?
08-11-2016 03:41 PM
Dont do that with gold unless you expect it to range what you will do overall is limiting your losses to the difference in your long and short and you will need to favor one position over another to make something out of it. or else it will display a const loss which doesn't make any sense. i tried and lost a lot in this confusion and got profitable only once when i predicted the direction and favored one position and closed the other before the other
08-11-2016 04:13 PM
Hi Futures, many thanks for the reply.
Please stay with me on this as I am very new and don't 100% understand the situation.
What about this scenario.
What if I did what I said above and opened a short, gold went down to 1200.
My long position would mean I would be down £5100 but my short position would mean I would profit from £4000 if I went long at 1280.
Could I close my short position and take the £4000 profit and wait for gold to recover to 1300, assuming direction of course.
I understand that whilst both positions are open I would not win or loose but what if I close when the time is right?
Would that work??
Again many thanks
08-11-2016 04:29 PM
Technically what you are trying is possible but this is a losing game trust me once you close your short your loss of long is £5100 and if gold goes down again you will be tempted to do another short that will increase your overall loss to £5100-£4000+ pips down from 1200 and you wil lose original context of what is happening with gold and wil worry about your orders only. Overall this needs perfect execution, entry exit. I did the same too one way profit on £50 per point in EURUSD and soon my losses exceeded from what i intended and i was hooked onto it. ultimately it reversed but nearing US election i wont recommend to try out new strategy. if you want to try out then sell less like £10 or £15 to limit some losses and ride it out if it goes all the way down but close you £50pp at some stop loss. thats what i would recommend.
08-11-2016 09:51 PM
Funds are only available for other trades once position is closed, @Futures is right, once there is discernable direction in favour, close out the opp trade, think to open a small hedge again in the opp direction once price threatens to turn again (as it will inevatably do) and look to increase hedge and decrease main bet if turn developes into real reversal.
PS I hope you are playing about on demo.
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