在追加保证金之前对冲新闻 (Hedging News Until Margin Call)
Hi Guys,
Been inactive for a while from this forum but still trading in real life.
Today I just got like a sudden dumb but fun ideas to trade, I think this will not work but my other self says really loud in my mind that this is how to safely bet on the market. I really want to hear your opinion.
The Idea,
Start with two different broker trading account, let's say Broker A and B. To this broker you put small amount of money that you're okay to lose. Let's say $100.
Then, precisely 1 minute before big news event you go Long on broker A with full margin and go Short on broker B with full margin.
I think this only works on Indices and Stocks as they tend to move in one direction on news and doesn't really have lot of whiplash.
Scenario 1 the market goes like 1% up, broker A will profit substantially perhaps tripling your account. broker B will got liquidated all of your $100 and that's it since you don't put any other money in this account.
Scenario 2 is the other way around from scenario 1.
This way you can safely protect your capital from sudden price move and margin call.
Let me know your opinion on this or perhaps you have heard something similar. Or you have another ideas that dumber than this one, let me know.
Been inactive for a while from this forum but still trading in real life.
Today I just got like a sudden dumb but fun ideas to trade, I think this will not work but my other self says really loud in my mind that this is how to safely bet on the market. I really want to hear your opinion.
The Idea,
Start with two different broker trading account, let's say Broker A and B. To this broker you put small amount of money that you're okay to lose. Let's say $100.
Then, precisely 1 minute before big news event you go Long on broker A with full margin and go Short on broker B with full margin.
I think this only works on Indices and Stocks as they tend to move in one direction on news and doesn't really have lot of whiplash.
Scenario 1 the market goes like 1% up, broker A will profit substantially perhaps tripling your account. broker B will got liquidated all of your $100 and that's it since you don't put any other money in this account.
Scenario 2 is the other way around from scenario 1.
This way you can safely protect your capital from sudden price move and margin call.
Let me know your opinion on this or perhaps you have heard something similar. Or you have another ideas that dumber than this one, let me know.
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