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You closed the trade that was protecting your account.

Daily trading lesson

You closed the trade that was protecting your account.

By Alan Solarsh · 7 November 2026

You closed the trade that was protecting your account. Your balance went up, but one bad move can now cost you more.

You close the extra trade at your desk, and your balance jumps. Then you check again and your equity and margin level are lower. Your broker's email says the spread is the fee to open and close a trade.

Before you close a trade that protects your first one, check what the spread will do to your equity. Equity is your balance plus or minus your open trades. Also decide now what you will do if price turns against you.

Pros: Your gain is locked in, and you see the real cost before you close.

Cons: Your protection is gone until you open a protecting trade again. A reversal after the close can hit your account with no cover.

I use the lessons on my blog to see what spreads cost in the forex market.

If you want to learn how to do this, the full lesson is here: https://forexrobots.co.za/blog/closing-a-hedge-in-forex/?utm_source=discord&utm_medium=social&utm_campaign=article-hedge-psych

Forex trading carries risk.

If you want to learn how to do this, this is the tool I use: https://forexrobots.co.za/blog/closing-a-hedge-in-forex/

First published on Discord (Discord #?alan-chart-analysis). Forex trading carries risk.

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