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Old 07-13-2007, 01:10 PM
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Libros Libros is offline
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wrong logic anamy.

"let think buy and sell in the same price and same lot=0".

the reality is instead of buy and sell first, we do not take any position.->same+we don't pay spread at all.
(buy 1 + sell 1= 0)

1.when price goes 1.2910 for the first time, we sell for the first time.
(buy 1+sell 2= sell 1)

2. when price goes 1.2920 , we sell more lot than original bcs:
(buy 1 + sell 4= sell 3)

3.etc

and you will see the result is same+we don't cost spread.

this way if you want compare it with the original one.
+on the original, more margin can be use than this.(this hedging divide margin by two)


i wonder what hedging use for.

Last edited by Libros : 07-13-2007 at 01:30 PM.
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