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To manage risk and capital effectively in forex and cryptocurrency trading, use proper position sizing 1%, always set stop-loss orders, and control leverage to avoid magnifying losses. Diversify your trades across different assets, aim for a favorable risk-reward ratio 1 to 2x, and conduct...
In trend-following systems, tight stop-losses can protect against significant losses and preserve capital. However, they often lead to premature exits and increased whipsaws due to market noise. To balance this, traders can adjust stop-losses based on volatility, using indicators like the...
Economic Announcements
Pre-Event Positioning:
Neutral: Close or reduce positions to avoid volatility.
Speculative: Position based on expected outcomes.
Options Strategies:
Straddle: Buy both call and put options for large movements.
Strangle: Buy out-of-the-money call and put options for...
Cross-Market Hedging:
Pairs Trading: Long and short positions in correlated instruments.
Currency Correlation: Positions in correlated currency pairs.
Options Hedging:
Protective Puts: Buying puts for downside protection.
Covered Calls: Selling calls on owned assets for income...