What is a martingale trading strategy?
The Martingale approach of trading is more popular with gambling, especially with Roulette where the chances of hitting a Red or Black are 50 – 50. So, to define Martingale from a forex trading approach, it is nothing but a process of cost averaging, where the exposure is increased (doubled) on losing trades.
This system is generally played with an even money game such as the red/black bet in roulette or the pass/don't pass bet in craps and is known as the Martingale. The idea is that by doubling your bet after a loss, you would always win enough to cover all past losses plus one unit.
- The strategy is geared to systems where the chance of winning is equal to the chance of losing. There are number of substantial risks an investor could face with a martingale strategy when trading forex. One of the issues with forex price movements is that they usually consolidate and then trend.
- Martingale (tack) The two most common types of martingale, the standing and the running, are used to control the horse's head height, and to prevent the horse from throwing its head so high that the rider gets hit in the face by the horse's poll or upper neck.
- Whether you are dealing with an older rescue or a puppy, martingale collars can help you to teach your dog not to pull on their leash. With a martingale collar, you can safely control your dog until they learn some basic commands.
Updated: 2nd October 2019