insurance

[devomark2]

you hear about people taking all sorts of insurance on football trading,ive tried it myself backing or laying a certain market and then backing or laying another market as insurance,and ive come to the conclusion that it is a complete waste of time,i might be wrong but as the markets are so tight there is no room to nick anything,so all i do now is take a view on a game and just back or lay what ever i think is gonna happen,then green up or red out at certain points,ok nothing new in what im saying,but can anyone see any use for insurance.:D

[Temujin]

The way I see it, is peoples excuse to complicate things.

Here is a thought, rather than taking out "insurance" against your initial bet, why not, ummmmmmmmm, just not put so much on in the first place. Strange concept I know.
If you are doing between markets, all you are doing is adding to your lack of value due to commission anyway, so just throwing money away.

You may choose to back your opinion and have little side earners, or little bets on things you find to be value, and good for you, but the serious "insurance" bets, have always just appeared to be taken by people who are simply dulling down their initial liability, and trying to appear more knowledgeable than they obviously are by coming up with terms that are a contradiction on their intention.

[devomark2]

cheers temujin,i think that just about sums it up,so if you hear of so called knowledgeable people talking of insurance you can know now that they are talking b*ll*cks:p

[shadowninja]

Yeah, I don't really get hedging. Eg you have a Dow futures contract and it's falling in price so you buy gold to hedge. Why not just sell the contract? You're reducing loss but reducing profit because you think you're not as correct as you were initially... so just bail out.

[jibiko]

:WTF another myth for the mythbusters?

:D

[devomark2]

:WTF another myth for the mythbusters?

:D

just like the famous dr slicers bet if you have heard of it,where he backs 0-0 FT and lays 0-0 in the HT market and a few forums spent months trying to figure out his bullshit as he claimed if 0-0 at HT he placed a mystery 3rd bet to ensure a win whatever happened,theres a few others as well,its when they try to sell their wonder systems that make me laugh,anyway fair play to them if suckers wanna buy them.:Naughty

[jibiko]

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