Fund Hedging · Hedging Cost · Week Trading Strategy
How To Filter ? · How it works ? · Keep It Simple To Stupid !
If the position is very long, you must consider the cost of the overnight spread, especially the overnight spread of the position for several years.
If you like to use a hedging strategy and hold positions for a few days or weeks, you should also consider the cost of overnight spreads, you must not hold a heavy position, otherwise the risk is huge.
If you want to judge the big retracement and big reentry of the foreign exchange market, from the huge cost of overnight positions, you can infer whether the institutions and investment banks will close the short-term positions on Friday to avoid taking risks in the next week. cost.
If institutions and investment banks closing positions on Friday, you can judge the retracement and reversal of the trend, and you can use these invisible analysis to adjust your positions.
Of course, the most important thing is to easily judge the general trend of the currency from the cost of holding position, help the fund manager to judge the general direction and trend, and more importantly, can warn the fund manager not to build a long-term, contrarian position.