|
Quote: |
|
 |
|
|
Well if you're in a YM position and the eCBOT freezes your can call your broker all day, they can't do anything either correct? Tradestation will answer the phone very fast, but if the exchange is down how could they flatten me?
And if you have limited funds and can't open a few spare offshore accounts there has to be a backup or "oh $hit" plan. To not have any hedging plan when trading leveraged is a blowout waiting to happen. And to hedge on an ETF isn't that bad an idea IF you have enough in your spare account to throw at it to effectively hedge the leveraged position. I don't have enough for a 2nd account at this point so I'll stick to my disaster plan till I can afford to get a backup account (I do intend to do this ASAP). |
|
|
|
|
MC - the OP's initial post was about HIS PERSONAL computer freezing, not the exchange. The exchange freezing is a different story.
Regardless, if you are too leveraged and can't afford a 2nd account backup, there's no hedging or oh sh*t options available at all. In order to hedge a position you need a 2nd account with funds sitting there waiting.
That's it. No way to hedge w/o more money. I'm not sure what you plan to have as your backup if no additional funds are available for this purpose.
To hedge takes money and quite a bit of it if hedging with an ETF at a share-to-contract ratio.
If you are that worried about the leverage you are using, I would suggest scaling back the leverage and/or wait until your trading account is larger. You have a valid concern, but that is a real risk when trading a small account and/or trading with high leverage.