What is a Hedge?

[balakalimuthu]

This will only come true if you hedge well, with small targets like 20 pips targets and in a ranging market. If you hedge in a trending market, then only one position will benefit until you unlock the hedge at a point of reversal.

Other than trading for the purpose of profit making, some people go for hedging to minimize the loss when price movements go against their position. But handling hedging needs much real time practice to perform well other wise it might lead to extra loss due to spread and additional volumes....

[Gupta]

-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.

This will only come true if you hedge well, with small targets like 20 pips targets and in a ranging market. If you hedge in a trending market, then only one position will benefit until you unlock the hedge at a point of reversal.

[jai]

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.

[bekantan]

In general, hedging is used to protect us from bigger losses resulting from any position.
Not recommended for beginners to hedge because it is very dangerous and requires skill and experience to close the position with benefits.

[sibali]

Hedging sometimes do when going on loss and traders realized that error so that lock with led to the opposite position. the position is a position of profit and opened is considered to have been in the highest or lowest level

[m3x_19]

Hedging is one of the strategy to limit losses, by opening an opposite direction with the original position wich already loss, so the floating minus can be stopped. This hedging strategy is not recommended by newcomers because it is needed a good psychology to hold such losses.

[kampung]

When a currency trader enters into a trade with the intent of protecting an existing or anticipated position from an unwanted move in the foreign currency exchange rates, they can be said to have entered into a forex hedge. By utilizing a forex hedge properly, a trader that is long a foreign currency pair, can protect themselves from downside risk; while the trader that is short a foreign currency pair, can protect against upside risk.

Read more: http://www.investopedia.com/ask/answ...#ixzz1lvmhFCiI

yeah indeed in this market we can also protect themselves from losing big with various facilities which provide broker and I think it can be used for specific trading time because I think this will really help us to survive in this business

[panicky]

When a currency trader enters into a trade with the intent of protecting an existing or anticipated position from an unwanted move in the foreign currency exchange rates, they can be said to have entered into a forex hedge. By utilizing a forex hedge properly, a trader that is long a foreign currency pair, can protect themselves from downside risk; while the trader that is short a foreign currency pair, can protect against upside risk.

Read more: http://www.investopedia.com/ask/answ...#ixzz1lvmhFCiI

[dog]

kayi tradres hedging isliye karte hai kyunki wo log stop loss ka use nahi karte aur unhe lagta hai ki unke account me margin call lag sakti hai jis wajah se unhe equity bachane ke liye hedging akrni pad jati hai
hedging se bachne ke liye traders ko stop loss ka use karna chahiye jo ki bahut hi safe aur acha tarika mana jata hai forex trading me

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?

[shinde]

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