What is a Hedge?

[posycns]

Hedging is very useful trading technique. 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. Can any body here give me any source from where i can get its deep knowledge ?

As an example exporters who get money in foreign exchange may wish to secure a certain currency rate to protect themselves against potential negative impacts because of fluctuations in forex.

[Gatu]

if you ak me, hedging is a waste of time becasue there is no telling where the market will take you and when you grow to understand what it takes to understand these market, when your trade goes down you just cannot help it.

[sundari]

A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell distressed securities, trade options or bonds, and invest in just about any opportunity in any market where it foresees impressive gains at reduced risk.

[kharisma]

hedge is the condition we open the different postion in same pair with same lots so
our trading account will be locking because we dont get profit and we dont get loss in our trading.

[supri]

Hedging is a strategy commonly used by forex traders for reduction of the risk of increase in loss due to adverse movement of currency. Normally traders use hedging strategy when they are not sure about the direction of movement of currency. It is the most important part of risk management. It is well known ways to offset the costs the investor buys a call option and a put option to sell out

[netros]

I think hedging is better used at the time of our accounts in a critical condition. hedging has been put up because if we have to find the right moment to open such hedging.

[richard]

hedging is a method one can use to minimize the amount of risk he is taking..forex hedging is something you can do to reduce the amount of risk during your forex trading..it is very good technique..

This is a business with a great risk with this you can reduce the loss in trade is a good strategy because you can meminim risk and maximize your profit this master will be successful

[rashedul]

Security is rattling multipurpose trading model. It prevents us from a real big decline and also squeeze our minuscule acquire. Oft i need to do hedging but fails. Equivocation is not so cushy and elliptic. Can any body here provide me any maker from where i can get its unfathomable knowledge ?

[rklover]

hedging is the very confused strategy. trader took buy and sell on same price or in different pairs. and close the trade when they see market will
come back from that price. its very confusing strategy for new one .

[nikhildey]

A hedge is an investment position intended to offset potential losses/gains that may be incurred by a companion investment. In simple language, a hedge is used to reduce any substantial losses/gains suffered by an individual or an organization.