What is a Hedge?

[shamim1611]

An instant hedge makes the perfect addition to any garden and is ideal for people who are creating a garden from scratch or redesigning their garden and want immediate results. The great thing about these hedges is that have already been grown, which means that they create an impact as soon as they are planted.

[hossam_a22]

The main use of the Accumulation Distribution Line is to detect divergences between the price movement and volume movement. An example of the Accumulation Distribution Line is shown below in the chart of the Nasdaq 100 exchange traded fund QQQQ:

[mosabbal]

In addition:: Hedging simply be a way to protect yourself against a Big Loss.

[sweety sania]

Hedging is not so easy and simple...
Hedging typically is really beneficial trading technique. It prevents us from a very big reduction and lock the little profit.

[tatbirt1264]

the hedge is a very benefical technic

[otang]

well i read a lot about the Hedge but i still don't get much about how to make use of the Hedge and with this i think i need a clear picture on how to make use of the Hedge i just hope i can get more information regarding the Hedge strategies and how to use it

interesting that you say about need a clear picture of how to utilize the Hedge that I just wish I could get more information on Hedge strategies and how to use them any trading system we have it all depends on money management that we do and our concept

[medhusa]

its no more than utilize likelihood to make profit from hedging, if youre intentionally use hedging to make profit then sometimes you should see the time initial before you decide to place 2 completely different position quickly. however if you simply use hedging as emergency exit then you certainly ought to watch the chart continously, therefore you wont miss any likelihood.

very true what you say about it so that use hedging to make a profit then sometimes you have to look at the initial time before you decide to put two completely different positions quickly financial management practices remain a major factor to achieve success and gain profit targets therefore we should be keeping the money our financial management

[oreoluwa]

well i read a lot about the Hedge but i still don't get much about how to make use of the Hedge and with this i think i need a clear picture on how to make use of the Hedge i just hope i can get more information regarding the Hedge strategies and how to use it

[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.

I really hate hedging. Our capital is locked and secure, but it can not grow, so we have decided to shut down one position. Hedging is not a profitable strategy, but it will make us live in fear. What does it mean that capital can not be developed?

[ryandwi]

Hedging typically is really beneficial trading technique. It prevents us from a very big reduction and lock the little profit. Hedging is certainly not so easy and additionally simple. We will need a superior calculation for applying this device properly.

well i also read a lot of books regarding the Hedge but i still find it very hard to understand because i can not get the main different between the Hedge and the stop lose so i will so much like to earn from the ex-pact the main different between the Hedge and the stop lose