Which Forex Trading website in Canada is not governed by US Rules and where Hedging is allowed?
FXCM.com is a good website but it is governed by US Rules. According to Rules in US Hedging is not allowed. Also when you open multiple orders you can’t close the last order unless you close the orders opened before that. When you put a stop for second order it closes your first order insead of last. Therefore I am looking for a website in Canada which is as good as FXCM.com but not governed by US Rules.

You don’t need to change the broker. Just transfer your account to FXCM LTD. (UK) and you can do hedging. Also you can attach your stops to specific orders. FXCM LTD. (UK) is not governed by US Regulations. It is governed by Laws in UK.
Good Luck.

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Which Forex Trading website in Canada is not governed by US Rules and where Hedging is allowed?
FXCM.com is a good website but it is governed by US Rules. According to Rules in US Hedging is not allowed. Also when you open multiple orders you can’t close the last order unless you close the orders opened before that. When you put a stop for second order it closes your first order insead of last. Therefore I am looking for a website in Canada which is as good as FXCM.com but not governed by US Rules.

Hi Rocky,

Most of the European brokers accept Canadian clients, but it is good to contact the broker directly and double check this information.
Our trading conditions seem to match your requirements, however, should you have any inquiries, you are more than welcome to contact us directly.

Best Regards,
FXCC Representative

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Baby pips teaches about FOREX, not hedge funds. I need a website with ‘lessons’ like this.
www.babypips.com/school
I completely understand that you don’t "trade" hedge funds, I used babypips.com as an example because I like the way the website explains things.

You don’t trade hedge funds. You invest in them, hopefully with relatively long-term money.

Hedge funds have thousands of different strategies and investments. Did you somehow want to learn about all of them? I spent a career in hedge funds doing risk management (which means you need to learn all the strategies of your fund) and there are tons I don’t know. Pick a strategy that you want to know about – pairs trading, statistical arbitrage, convertible arbitrage, capital structure arb, global macro, etc… and start reading.

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Hi,

I am planning to partner with a friend to launch a Forex investment Offshore Hedge Fund.

I would like to read some books about previous successful FOREX Hedge Funds so I can get a better understanding of what our risks, limitations and expectations might be.

What are the top Hedge Funds trading Forex? Besides Soros, which I would call more like a Macro Fund vs our investment techniques that are going to be short-term.

Thanks

Most forex funds are quite small. Many who start forex funds also keep their “day jobs.” Whatever the size, one real advantage to starting a fund is that the fund manager can legally accept compensation for his services. This compensation may provide a good supplement to the manager’s other income or it may allow him to manage the fund on a full-time basis.

The compensation for a fund manager usually consists of a management fee and a performance allocation, which is a share of the profits. A management fee of 1% and a performance allocation (or performance fee) of 20% is well within global industry standards. Of course, the fund manager also receives the profits on the money he himself has invested in the fund.

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I’ve been using a practice account in AVAFX. and im planning to open a real trading account.

but i want to know clearly what is

OPEN a SELL POSITION

and

OPEN BUY POSITION?

I really want to know what it works. im a bit confused with the buy and sell. thing.

also CLOSE POSITION AND HEDGE POSITION?

THANKS!

hope you can provide easy explanation. thanks

Attached some links that should be able to help you.
You can search any trading related word you don’t understand on www.investopedia.com.
Great website for new traders.

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For example a large hedge fund wants to buy 300 million USD from a major pair in the shortest time possible. What strategy could he use in order to open the position without affecting the price too much. Would he buy them in increments from different interbank platforms( if yes, how small, and how many seconds or minutes before the next increment) or would he open it in a single large block from 1 interbank platform?
Also i have seen in interbank platforms like currenex, that you can actually open a position with one large block of up to 100 million USD based on ECN prices. But by doing that you have to pay the large spread of 5-9 pips(even for the major pairs). Would this action of buying 100 million USD would move the price 5-9 pips respectively.
Another question i have is if by using many interbank platforms to open a position with increments, will you actually not move the price a lot(example: 300 million USD divided by 4 interbanks, 75 million for currenex, 75 million for icap ebs, 75 million for hotspot fx, 75 million for fxall in lets say a period of 2 minutes and increments of 1 million) will this be a good strategy, or it doesn’t matter if you use different platforms? Is this legal (to use many platforms)?

Not familiar with what specific firms actually do, but I can address several points in your question.

If you don’t want to affect the price too much, use limit orders. You can "sit on the books" and let someone buy/sell into you. You are trading the speed (and probability) of execution for a better price. You can also place multiple limit or markets orders of smaller sizes across time and price levels in order to not appear to be one massive order. Algorithmic traders who spot your massive order may trade against you in the short-term knowing that you want to put in $300MM.

It’s legal to use multiple platforms as long as you’re not using them to trade with yourself to appear as if there is trading volume when it’s actually just you selling to yourself. Not really an issue with Forex markets as opposed to penny stocks that typically have no liquidity.

Forex markets should be arbitraged across, so that at any time it should be arbitrage free. If you were to push up the ask price on platform A, someone could buy on platform B and sell it to you on platform A at the higher ask price. However, chances are both platforms are accessing the same set of market makers and banks, and will be buying into the same market simultaneously. In terms of execution, it would be the same as putting 4 orders of $75MM through the same platform.

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In theory, the benefit of speculators in the market is to provide liquidity for those who need to hedge for business purposes. My question is, in futures and forex, contracts are cash-settled and 99% of brokers forbid any physical delivery in both the spot Forex and Futures forex/commodity/index/etc futures. How is public speculation money being effectively used as the other side of the hedge trade if we aren’t trading the same contracts as the big boys?

Like with FXCM or any other Forex broker that says they are STP, when they credit your account 100,000QTY of EUR/USD if you went long 1 standard lot, are they really giving you 100,000 euro’s that another person (Be it a bank, company, government) needed to unload on the Interbank? That’s how these companies market, but I’m wondering if it’s a bunch of false advertising anymore.
okay so can you give me a view of the flowchart? i.e x > y > z

whos balance sheet changes?

As a 10+ year Forex trader, here is how I trade to make money…

If you want, you can also follow these steps. I’ve dumbed it down to the easiest, yet safest way to win in the Forex.

1) Open a live account at http://bit.ly/iPV25O
2) Select AAAFx broker, and open MICRO account with 200:1 leverage.
3) Deposit at least $300 in your account to start.
4) "Add to Portfolio" the top 20 strategies at http://bit.ly/mJiyZV
5) Don’t add any strategy that makes less than 10 average pips per trade.
6) …when adding strategies, set maximum number of trades to 5, and…
7) …select lot size of 0.1 "mini" lots for each $1000 in your account.
It will trade automatically, following all those top 20 strategies.
9) Then sit back, relax and take a vacation as you make easy Forex money.

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While hedging in FX is no longer allowed in the U.S. since May 15, 2009, it is still allowed in Australia. See the website link below:

http://support.fxcm.com/fxts/user-guide/trading-functionality/hedging/

http://felixforex.com/

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I’m considering going long and short US treasury bond ETF’s considering the volatility it probably will be experiencing soon. Anyway, i know hedging forex is illegal, but is hedging ETF’s and equities legal?

If you think that there will be extreme volatility soon then you should be doing a long straddle on the ETF’s options. Going both long and short doesn’t do you any good as one negates the other but a long straddle where you buy both a call and a put is a bet that the price will change a lot. If you think the market will be very volatile you can double up on an out of the money long straddle and write an at the money short straddle to offset the costs of the play and if you’re lucky that would pay for itself (essentially a butterfly that’s doubled up on the wings).

There’s nothing illegal about hedging but you need to know how to do it and going both long and short isn’t hedging unless you can lock in prices, it takes derivatives such as futures, options or contracts for differences to hedge. Options are best due to their nonlinear profit to price relationship. There’s always at least two legs to a hedge and you don’t want them to just cancel out. Note that CFD’s are illegal in the US market and that’s perhaps why you think hedging in the Forex market is illegal

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Particularly on the types of trading allowed e.g. hedging

Contact a good Broker and see what they can do for you, they’ll have all the info you need. I like Easy – Forex, there is some good info on brokers here:
http://learnhowtotradeonforex.com/

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