Trading an All Red Screen

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Trading An All Red Screen. Video by Howard Hutchinson.

If whilst we are trading, the odds move against us and to equalize our trade would mean trading to an all red screen, it may be tempting to place a bet or lay to reduce our current liabilities whilst we wait for the odds to move back in our favour. This video demonstrates the effect that placing a bet of lay at unfavourable odds will have on our position.

Although we will be reducing our total exposure, a partial trade out at unfavourable odds will leave us with exactly the same potential loss at the current odds, and will also make it harder for us to exit without any financial damage.

We could be making our situation worse rather than better.

This video uses the Hedge 3 Bets Spreadsheet.

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