What is a Hedge?

[Khan Mustafiz]

Securing is very useful dealing strategy. It stops us from a very big reduction and also secure our little benefit. Often i want to do hedging but isn't able. Securing is not so uncomplicated. Can any system here provide me any resource from where i can get its strong information ?

[Amer_Alajalen]

i am hate the hedge because it can make U lose for ever
u can not got out from the hedg so i hate it

[haytham527]

may be hedging is more safe

but always less risk means less profits

so hedging can be the asolutions in great peaks

[waqar arif]

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 was googling the hedge method but could not find a right place to find what is mean by dedge now i know what is hedge thank you sir for posting the definition of the hedge it was valuable to me i appreciate the post...

[mizishab]

This will only come real if you protect well, with little objectives like 20 pips objectives and in a varying industry. If you protect in a popular industry, then only one place will advantage until you discover the protect at a factor of change.

[waqtitrader]

A hedge is an investment position intended to offset potential losses/gains that may be incurred by a companion investment.This strategy is widely misunderstood, but it's not as complicated as you may think.Learn more about how hedge funds differ from traditional investments. We are hedge fund leaders in financial management and global investment

nahi yar jahan tak main ne dekha ha ya knowledge hasil kiya ha na to mugh ko to ye pata chala ha k hedging ek strategy ha jo k app ko loss se bachati ah or app ki trade jo open hane un ko freez karti ha yeni ek he point par buy sell ya buy or sell kar k ek pair par position ko freez kar dena main to es ko he samghta houn hedging

[nirmaldu]

A hedge is an investment position intended to offset potential losses/gains that may be incurred by a companion investment.This strategy is widely misunderstood, but it's not as complicated as you may think.Learn more about how hedge funds differ from traditional investments. We are hedge fund leaders in financial management and global investment

[FREEDOM]

If we have courage to do cut lost then i think it is not necessary to take a hedge. By taking or using hedge, it means we hold our position untill a specific level to close one of the order. Personally i prefer to use cut lost than hedge because i don't want confuses myself and wait for the next moment to make another order.

[seeker]

they thought forex was a get rich quick sheme . when reality dawned on them they were minus their starting capital sadly enough this process repeats itself over and over again..

[truegoa]

yes rightly said hedging is like a two side coin if you use it properly then you can earn lot but if you failed to apply it properly then it will not be helpful

Agree with your opinion that this strategy can harm our trades even our account when we do not use it properly. Hedging strategy usually be used to safe our profits or just to limit our loss. And even if this strategy can help us (who really able to use it properly) some brokers do not allow this strategy to be practiced in any account beneath them. So, just be wise when you considering to use it.