What is a Hedge?

[gretongan]

to firmly secure the funding we were nearly done hedging mc then a open positions in the other diorder the previous order. other then the challenge is the idea that we can feel laborious in order to get out in this hedging technique.

[suhermanto]

its no more than utilize chance to make profit from hedging, if youre intentionally use hedging to make profit then sometimes you should see the time 1st before you place 2 totally different position directly. other then if you really use hedging as emergency exit then you ought to watch the chart continously, therefore you wont miss any probability.

[chinku]

when i fully dis including hedging plainly hedge. subsequently it ought to be the one solution there for everyone without different solution can be employed. i find myself the item ensures that most of us arent guaranteed around the current market in addition to mobility in addition to i am wondering on the way and this can be risky!

[The Blessed]

Hedging is simply the way of saving your account from margin call. This is done when a particular trade that is running is going the opposite side. So in order not to just close the trade in loss, you open another to the opposite so that the profits made from the new opened position can be used to compliment the loss of the running one. That is simply hedging.

[Jubel300]

It is an one kind of trading tecqnic it prevents us from a very big loss and also lock our little profit. Often i want to do hedging but fails.hedging is not so easy and simple...thanks

[midle]

according to actually my knowledge on your forex market hedge will be the formula to actually hack the market i believe that get and sell from a similar place is called the hedge it's applicable as soon as the trader fails to actually notice the trend on your forex market.

[mcceducation]

i can say, the hedging, a financial organization that was formed with the aim of collecting funds from large investors to use the investment in the Forex market. then any position that you're open, will benefit. generally one can do is hedging traders with large capital. That's why there is an organization called "Hedge Fund" so its the hedge.

[huk86674]

Hedge are impotent tools of forex. It is useful technique of the forex business. It is use forex to reduce cost and make profit in forex business. Hedge is not easy if you expert forex business then you benefited use hedge.

[dewik79]

Hedge Definition: A Hedge is a trading strategy whereby an investor seeks to reduce the risk of an adverse price movement on a security, commodity or currency that he owns in one market by taking a position or combination of positions in other markets. This "hedging" practice began when public futures markets were established in the late 1800s to allow for efficient price protection in the agricultural commodity markets. The risk mitigating process has expanded over the years to include futures contracts for hedging currencies, precious metals, energy, and interest rates. Although futures contracts are the most popular medium for hedging strategies, other vehicles typically used are forwards, swaps, options, insurance policies, and many types of over the counter derivative products. An investor will use this strategy if he is unsure of what the market may do and wants to protect his downside risk. Setting a forex stop-order is not necessarily considered a "hedge" since it can be accomplished in the same market, yet it does mitigate downside risk. Hedging requires a cost-benefit analysis since hedging instruments do require premiums and commissions or spreads to be paid. Typically, an investor knowledgeable in options will sell a call option to offset the cost of buying a Put option. The Put guarantees downside protection and potential for gain, while the Call limits the upside, thereby "locking in" a profit on the security or currency.

Hedging is usually done to lock in a position so as not to continue minus. However, hedging is not needed when the position we are good. So, I think we can try to make the right decisions, so no need to hedge. Because hedging to me just a waste of time, just an attempt to delay defeat.

[ramix]

With the attraction of hedge funds as well as hedge fund of funds, it is no surprise that their amounts have actually been expanding at an explosive rate.