What is a Hedge?

[dadaa]

with hedging, 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". -A financial organization that was formed with the aim of collecting funds from large investors to use the investment in the forex market.

[Sri Hartono]

I think hedge tends to be a game for people who have money like a millionaire.
those of us who only have a little capital I think it would be difficult.

[tajdarbet]

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.

main ne jo forex trading main sab se peheley strategy us eki thi woh thi heding han i main ne es ko use kiya tha sab se pehely es main app ek he point par ek he pair ko buy bhi kartey ho or sell bhi kartey ho ye strategy ager app ko sahi taran se nahi ati to app ka sara account balnce ahesta aehsta khatan hota jata ha

[ali1011]

G ap bilkul theek keh rahy hen hedging ke liye poori tarah technical studies hona bahut zaruri hota hai.mera be yahi kehayl hy k naye traders ko hedging ki jagah stop loss aur take profit ka use karna chhaiye .

[naziafarhan]

Hedging means the byu and sell the same pair at the same time so that there is no profot and loss for any movement of the pair. I think it is the smallest definition of hedging. You can give your thinking here.

[newentry]

i prefer to use hedging then i have to put stop loss at my trading and with it i have chance to convert my losing to profit , but not simple like that, we have to have good ability for it and so before do that then we have to learn and practice how to control and use this system with good
and of course need good mental, discipline and patience for it

[mita]

hello brother i cannot inderstand what you are trying to say because i don't know hindi.please explain me in english.actually what is hedging ?how can i use hedging?

[mhchomsi]

I really do not like it if I was hedging. but if it is the only way, then I would do with the expectation that prices will stabilize. I feel it shows that we are confident about the market and we try to predict the movement and direction

[ezincenter]

This type of trading I have used some days but i leave it after I make some losing trades, in order to succeed by trading with the hedge you need a large capital so that you can get a full control of your positions.

[norix]

it's only use the probability to create profit from hedging, if you're intentionally use hedging to create profit then usually you must see the time first before you put two different position at once. but if you use hedging as emergency exit then you should watch the chart continously, so you won't miss any chance.

automatically works that way, if we just left behind the same point in going down it is why keep using headge, 2 positions to lock in profits even if we lose the meal was spread versus entry position,be among the last true entry in the account