Forex Futures Trading

in Forex Why if EUR/USD price goes up the price of the USD/CHF tends to go down?

then What is your Hedge strategy, How much you buy and sell

The reason that the two mentioned currency pairs tend to move opposite of each other is do to a relationship called corellation. These two happen to have a high negative corellation. If two pairs have a positive corellation they would tend to move in the same direction.

I like the chart that Kathy Lien produces at http://fxtsp.com/forex_report4.htm

What is interesting with the two pairs that you mentioned is that you do not buy and sell...you only buy positions in both. If you structure your hedge properly you will also receive a very nice interest payment every day, 7 days a week regardless of what the currency pairs price does.

The number of lots you need to buy to set up a balanced haedge is dependent on a number of variables such as volatility, market conditions, current trends, interest rates, corellations etc.

This can be greatly simplified by using one of the proprietary Allocation Models available from a couple of sources.

Good luck.

Paul

Pt10, Steve Misic: Options Hedging Strategies for Forex

Getting Started in Forex Trading Strategies $14.96 This book is in New - Excellent condition

Hedging $14 This book is in New - Excellent condition

Forex Patterns And Probabilities By Ponsi, Ed $93.2 Author: Ponsi, Ed Series Title: Wiley Trading Subtitle: Trading Strategies for Trending and Rangebound Markets Publication Date: 2007/07/27 Number of Pages: 250 Binding Type: Hardcover Language: English Depth: 1.25 Width: 6.25 Height: 9.00

Getting Started in Forex Trading Strategies By Archer, Michael Duane $27 Author: Archer, Michael Duane Series Title: Getting Started in... Publication Date: 2007/11/09 Number of Pages: 190 Binding Type: Paperback Language: English Depth: 0.50 Width: 6.00 Height: 9.25

Mastering the Currency Market By Norris, Jay/ Gaskill, Al/ Bell, Teresa $39.81 Provides intermediate to advanced traders with foreign exchange techniques and strategies regardless of the market, including longrange planning, risk management, countertrending lowvolatility markets and hedging against fluctuations in currency values. Author: Norris, Jay/ Gaskill, Al/ Bell, Teresa Subtitle: Forex Strategies for High and LowVolatility Markets Publication Date: 2009/11/09 Number of Pages: 305 Binding Type: Hardcover Language: English Depth: 1.00 Width: 6.50 Height: 9.75

Dynamic Hedging $126 This book is in Used condition

The Forex Mindset By Martinez, Jared $39.85 Author: Martinez, Jared Subtitle: The Skills and Winning Attitude You Need for More Profitable Forex Trading Publication Date: 2011/06/23 Binding Type: Hardcover Language: English Depth: 1.00 Width: 6.25 Height: 9.25

High Probability Trading Strategies By Miner, Robert C. $72.49 Author: Miner, Robert C. Series Title: Wiley Trading Subtitle: Entry to Exit Tactics for the Forex, Futures, and Stock Markets Publication Date: 2008/10/20 Number of Pages: 272 Binding Type: Hardcover Language: English Depth: 1.00 Width: 7.25 Height: 10.25

Forex Revolution $41.85 This book is in Used condition

Forex Simplified $22.46 This book is in New - Excellent condition

Profiting With Forex $41.25 This book is in New - Excellent condition

Forex Conquered $67.5 This book is in New - Excellent condition

Hedging Instruments & Risk Management $56.25 This book is in New - Excellent condition

The Handbook of Inflation Hedging Investments $59.96 This book is in New - Excellent condition

Pricing and Hedging of Derivative Securities $223.13 This book is in New - Excellent condition

Options Hedging & Arbitrage $60.5 This book is in New - Excellent condition

Modelling And Hedging Equity Derivatives $360.87 This book is in Used condition

Arbitrage, Hedging, and Speculation $75 This book is in New - Excellent condition

Energy Hedging In Asia $213.75 This book is in New - Excellent condition

Hedging Interest- Rate Exposures $42.75 This book is in New - Excellent condition

Extreme Value Hedging $22.46 This book is in New - Excellent condition

Forex Revolution By Rosenstreich, Peter $39.83 Author: Rosenstreich, Peter Subtitle: An Insiders Guide to the Real World of Foreign Exchange Trading Publication Date: 2011/03/15 Number of Pages: 277 Binding Type: Paperback Language: English Depth: 0.75 Width: 5.75 Height: 8.75

Forex Frontiers By Cavric, Ivan $66.79 Author: Cavric, Ivan Subtitle: The Essentials of Currency Trading Publication Date: 2011/09/01 Number of Pages: 228 Binding Type: Hardcover Language: English Depth: 0.90 Width: 6.25 Height: 9.00

Thirty Days of Forex Trading $63.75 This book is in New - Excellent condition

The Forex Chartist Companion $100.59 This book is in Used condition

Beat the Odds in Forex Trading $70.1 This book is in Used condition

The Forex Trading Course $45 This book is in New - Excellent condition

Forex Shockwave Analysis $56.25 This book is in New - Excellent condition

Forex Made Easy $22.46 This book is in New - Excellent condition