PDA

View Full Version : What is a Hedge?



Pages : [1] 2 3 4 5 6 7 8

alamayreh
2012-01-08, 06:02 PM
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.

forex_player
2012-01-09, 07:04 PM
hello guys i just want to warn you all from this thief adnan alamayreh, he managed one of my accounts and made me lose over 8,000 $ in one night and promised me to give me the money back but he never did, over a year..and to prove my point just check this link out

https://forum.mt5.com/member.php?9716-Alamayreh80&

he was banned from more than a website and everytime he moves to another and keep stealing people's money///plz be careful he is bad man

nona
2012-01-10, 01:50 AM
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.

Hedging double-edged sword, O my friend, it is of the profits achieved by increasing the proportion of risk in the cloud every time multiplied by the lute to enter the deal, so you might use capital management firm with trading the best way of hedging
Because the heavy loss and do not have the end of my personal view

mohit
2012-01-20, 12:44 PM
Hedging double-edged sword, O my friend, it is of the profits achieved by increasing the proportion of risk in the cloud every time multiplied by the lute to enter the deal, so you might use capital management firm with trading the best way of hedging
Because the heavy loss and do not have the end of my personal view
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

atif58
2012-01-20, 01:12 PM
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 ?

anubhavsingh
2012-01-20, 11:34 PM
Hedging ek aisa tarika hai jisme ek trader kisi ek pair ko buy bhi kar leta hai aur sell bhi kar leta hai
aisa karne se wo apni equity bachata hai jisse ki uska account margin call tak nahi jata..aur aisa tab bhi karte hai jab traers ko lagta hai ki ab trend change ho gaya hai aur wo apni deal ko loss me nahi kaat ne dena chahte to wo us deal ka loss dusri taraf deal khol ke barabar kar lete hai..bahut se trader hedging use karte hai lekin naye tradres isme uljah jate hai

ericnyamu
2012-01-21, 10:08 PM
i totally dis like hedging if i hedge . then it SHOULD be the only option available to me and no other option can be used . i feel it shows that we arent sure about the market and movement and we are guessing of the direction and this can be dangerous !

anubhavsingh
2012-01-23, 01:34 AM
As I mentioned, the hedge is a way of trading is relied upon to get out of deals, the lowest rate possible loss which requires that the trader has full professional technical analysis because the hedging method is very dangerous and sometimes you can not control transactions

hedging ke liye poori tarah technical studies hona bahut zaruri hota hai..yahi ek reason hai jis wajah se naye traders ko hedging ki permission nahi di jati kyunki unhe market ki itni deep knowledge nahi hoti jis waja hse wo hedging wali deals me fas ke reh jate hai..
naye traders ko hedging ki jagah stop loss aur take profit ka use karna chhaiye

ericnyamu
2012-01-23, 10:33 PM
yes like any trading strategy there's the pros and cons no debate about that but maybe its just me but when am in doubt hi donot even put two trades in the opposite direction i just let the market decode for me which trade i should but . its much safer that way

ericnyamu
2012-01-24, 09:57 PM
well just thinking folks does the term hedge king have anything to do with hedge funds . LOL because hedgefunds are very used to using the hedging strategy maybe the term originated from there . will have to dig in futhure to find out more

shinde
2012-02-05, 05:23 PM
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

dog
2012-02-09, 11:38 AM
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?

panicky
2012-02-10, 05:09 AM
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/answers/forex/forex-hedge-and-currency-hedging-strategy.asp#ixzz1lvmhFCiI

kampung
2012-02-10, 03:43 PM
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/answers/forex/forex-hedge-and-currency-hedging-strategy.asp#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

m3x_19
2012-02-22, 08:07 AM
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.

sibali
2012-02-22, 08:03 PM
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

bekantan
2012-02-23, 06:33 AM
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.

jai
2012-02-26, 05:57 PM
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.

Gupta
2012-02-29, 04:48 PM
-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.

balakalimuthu
2012-02-29, 10:23 PM
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....

fanesa G
2012-03-04, 11:17 AM
-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.

Hedge fund actually does not trade all of their money in the forex market, they also trade their money in the commodities market like gold and oil. Especially for gold almost all hedge fund put their fund here, because price of gold usually raise every year.

Shady Moustafa
2012-03-04, 06:17 PM
Hedging is to open buy and sell of the pair at the same time then if the pair up or down both will be with profit then if it goes up then close the buy order with profit then wait for the pair to go down to close the sell order with profit also but hedging may make doubling losing or double earnings but for me i do not like it.

my-forex
2012-03-06, 01:37 PM
Hedging is to open buy and sell of the pair at the same time then if the pair up or down both will be with profit then if it goes up then close the buy order with profit then wait for the pair to go down to close the sell order with profit also but hedging may make doubling losing or double earnings but for me i do not like it.

well, hedging is to open a position between the sell and buy at the same time making it possible get a profit from one of them with the purpose to minimize losses. but his weakness for hedging trading requires a lot of time because it looked too can be bad. unless we use the EA

maryosa
2012-03-07, 03:14 PM
Is good to use hedge is position look very bad, especially if scalper trader. Hedge help to stop loss of trade that is running and help trader to calculate situation and decide what next to do. If want to use hedge, then need to have proper knowledge of technical and fundamental analysis, especially support and resistance. Also need to know pivot point and must watch position all the time. Hedge trade normally bounce strong at point where support and resistance coincide with pivot point and can unlock hedge first at this point. Also need to use fibonacci to determine how far trade can retrace from bounce on hedge and then can know when to lock again to watch after gain some pips from bounce.

my-forex
2012-03-07, 05:59 PM
I think so too, but we must be very careful when we use this strategy because if you are not careful we will risk losing all. but in principle all good strategies, and certainly there is the weakness, so where are you good at it I think is best and will be able to produce.

right, of all the strategies has advantages and disadvantages depending on how we process them into a strategy that suits our style of trading forex. there is no perfect strategy ....

netra
2012-03-09, 06:17 PM
aapne bahut ache se explian kiya..hedge me bahut hi kam use karta ho naur tabhi use karta hon jab mujhe lagta hai ki me abhi aur paisa deposit nahi kar paunga aurm ujhe equtiy bachani pad jati hai amrgin call se..baki dino me me bas stop loss aur taek profit ka hi use karta hon. naye traders ko hedging se bach ke rehna chhaiye kyunki isme bahut risk hota hai

sunil
2012-03-09, 06:47 PM
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

fanesa G
2012-03-09, 06:58 PM
Hedge fund actually does not trade all of their money in the forex market, they also trade their money in the commodities market like gold and oil. Especially for gold almost all hedge fund put their fund here, because price of gold usually raise every year.

Hedge fund are really profesional person because they trade in a lot of market type and using a lot of fund from their client. They ussualy known as smart money people cause a hedge fund can predict where to trade that will give her most profitable market. They know where money will flow it is in forex, gold or stock correctly.

Protech
2012-03-09, 10:52 PM
Normally, hedging can be used to be able to protect us from larger losses completed from just about any position. Not suggested for novices in order to hedge as it typically is very hazardous also demands skill not to mention undertaking that would close the career with the help of benefits.

deathzz
2012-03-10, 12:14 PM
hedging trading technique that is most convenient because it relies on resistance to memuka capital position, but heding also have a very high risk if we are wrong in the open position or stuck into a high news or uncontrolled trend.

Mark
2012-03-12, 11:40 AM
Interesting information, although a little bit I have learned. But you have to explain more about the conditions that can be detrimental if we use hedging in the trading. I'm still going to listen to this tread. Thanks.

xiaotanghao
2012-03-13, 05:58 PM
Thank you so much for your lessons here.I think what I have learned hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.

chirayu
2012-03-14, 01:13 PM
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.

Mark
2012-03-14, 02:01 PM
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.

An interesting opinion. At first I thought that hedging can also be applied to trending. In hedging, as long as we do not close one of them, would not it be always constant floating happens, is not it? so, what strategies are used for trending to hedge?

rajesh
2012-03-14, 03:01 PM
I would say that a hedge is simply opening two positions in opposite directions with the hope of making profits from both position. However the resource is also used by traders to lock bad trades such that the loss is stopped until they get to a point where they know that the price will reverse, and then they unlock the hedge.

hemaabdo
2012-03-14, 05:53 PM
the hedge is the most important tool can help us in the fluctuation of the price and to avoid the more loss of money but i using the hedge but using the limit in loss or profit according my prediction

CoreMethod101
2012-03-16, 04:20 PM
An interesting opinion. At first I thought that hedging can also be applied to trending. In hedging, as long as we do not close one of them, would not it be always constant floating happens, bukah so? so, what strategies are used for trending to hedge?

i think hedging can be used not only to prevent losses but also to prevent the profit from decreasing and then open the hedge when the trend resume.
but to do this means we must know the trend cycle because if we do it at the wrong time we will not achieve this purpose.

taqiniazi
2012-03-20, 12:51 AM
Hedging is very useful techniquee that is used to reduce the risk of adverse price movements in an asset and your investment. it is two side technique but it consists of taking an offsetting position in a related security, such as a futures contract.

norix
2012-03-20, 11:36 AM
You are right. Hedging strategies can indeed function as locking the price, we live flair to remove one of them. This was done when there has been a real change in the trend.

be careful if you want to implement this system because we are going against the grain of our first entry, it is true we can minimize these risks. but do not get too far
to suppress

patil
2012-03-20, 05:18 PM
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.

norix
2012-03-20, 08:04 PM
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

ezincenter
2012-03-21, 05:28 AM
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.

mhchomsi
2012-03-21, 07:02 PM
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

mita
2012-04-09, 05:58 PM
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?

newentry
2012-04-10, 11:37 PM
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

naziafarhan
2012-04-11, 01:20 PM
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.

ali1011
2012-04-11, 06:11 PM
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 .

tajdarbet
2012-04-11, 07:40 PM
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

Sri Hartono
2012-04-12, 01:14 PM
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.

dadaa
2012-04-14, 07:48 PM
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.

toptrader43
2012-04-15, 10:59 AM
Hedging is worthwhile trading methods. It stops you from a very larger reduction as well as also lock our very own little profit. Usually i like to do hedging but fails. Hedging is not so easy and additionally easy.

yaar
2012-04-15, 07:57 PM
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

johntra
2012-04-17, 12:22 PM
In my opinion, it was a hedging strategy as well. Because Hedging can accelerate our profit, the direction the price movement. That is, for the OP who has profit, can be directly diexit, and for those who are still floating minus, leave open. Hedging strategies are very good for the trader who is able to predict the exact movement of the Range. Traders who use hedging, should he have estimated the price at the price will reverse direction.

yaar
2012-04-24, 12:52 PM
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 ?

dwik
2012-04-24, 05:43 PM
In my opinion, it was a hedging strategy as well. Because Hedging can accelerate our profit, the direction the price movement. That is, for the OP who has profit, can be directly diexit, and for those who are still floating minus, leave open. Hedging strategies are very good for the trader who is able to predict the exact movement of the Range. Traders who use hedging, should he have estimated the price at the price will reverse direction.

all right sir. indeed, the hedging strategy is perfect for beginners and those already exspert.
in addition, this strategy should be applied when the market is sideway, because the price is not too significant movement :)
we expect profit.

yaar
2012-04-25, 12:28 PM
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

yaar
2012-04-25, 12:56 PM
be careful if you want to implement this system because we are going against the grain of our first entry, it is true we can minimize these risks. but do not get too far
to suppress

anoha
2012-04-25, 11:21 PM
Hedge open short position with a bargain buy for example, or the contrary this is to avoid or to minimize the loss in some cases, a very good people who can deal with it correctly Anhemen could lead to bigger losses

netra
2012-04-26, 02:21 PM
Is good to use hedge is position look very bad, especially if scalper trader. Hedge help to stop loss of trade that is running and help trader to calculate situation and decide what next to do. If want to use hedge, then need to have proper knowledge of technical and fundamental analysis, especially support and resistance. Also need to know pivot point and must watch position all the time. Hedge trade normally bounce strong at point where support and resistance coincide with pivot point and can unlock hedge first at this point. Also need to use fibonacci to determine how far trade can retrace from bounce on hedge and then can know when to lock again to watch after gain some pips from bounce.

elektra
2012-04-29, 03:43 PM
Rumors are rumors almost 100% of the time. Think about where in the motion you heard the rumor. If EURUSD is up 50 points in last 15 minutes and the rumor is dollar negative, well - then you missed it. Whenever you in motion with the trade, determine where you are entering.

jg6073727
2012-04-29, 03:49 PM
this is a good post. here only a simple way of forex earning is sheared. it is easy to understand and reliable method for new traders. But forex is very vast field. one cant master it

kalponick
2012-04-29, 08:51 PM
trading a pair both in long and short with same stop-loss and take profit target but with higher risk to reward ratio is called hedging.. sometimes it can give some profit.. especially when big news going to release... because sometimes price formed a new trend and you can ride it profitably with hedging..

bejomulyo
2012-04-29, 09:27 PM
Rumors are rumors almost 100% of the time. Think about where in the motion you heard the rumor. If EURUSD is up 50 points in last 15 minutes and the rumor is dollar negative, well - then you missed it. Whenever you in motion with the trade, determine where you are entering.

so if we do hedging, we must aware the rumors ?

andhwrey
2012-05-06, 12:21 AM
Hedging is about buying and selling in same size,so our positions are locked,but hedging cant be used for only protect positions with less experience
its for me like mind games,especially our conditions are holding loss,thats are lot of pressure to release lock at best time,and its not easy to open trades
in situations with lot of pressure

Nabi Ahmed Gill
2012-05-06, 11:13 AM
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.

boss ap na to kafi khobsorart post ke ha muaja ap ke post boht passnad aye ha main es ss kafi madada hasil kar sakoon es laya muaja posting ko parna or samaja boht acha lagta ha main be es laya ya kam karta haoon main sub sa phelaa trading main apna knwoledge earned karoon ga us ka bad really trading kar ka profit earnd karoon ga.

Maham Gill
2012-05-06, 05:36 PM
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.

trading main boht sara faida ha to insta forex kas kar to boht acha or best forum ha es main stop loss or take profit ke jo strategy ha mauaja wo boht sara sara profit earned ho ga mai es laya ya forum ko passand karta hon or mauaja es forum par pora pora borasa ha,

ayusri
2012-05-08, 05:27 AM
hello my friend, I advise you not to use the Heage, because he is dangerous, and you can lose all your capital in a single opposition, I told you that I lived through this experience.

goooood luck and happy trading ;)

hedge will only make a lot of losses because eventually there will be loss of position recently opened a new and opposite direction, away from the hedge because it will make more and more stalls, hedge not just for our use, if we have komitmant that we are 40 points los let los will be touched and let the future management of our capital that we use to restore los, hedge would only cause a serious headache and can degrade the quality of traders because traders became depressed due to the many who suffered los

nurhidayah
2012-05-08, 06:50 PM
hedge will only make a lot of losses because eventually there will be loss of position recently opened a new and opposite direction, away from the hedge because it will make more and more stalls, hedge not just for our use, if we have komitmant that we are 40 points los let los will be touched and let the future management of our capital that we use to restore los, hedge would only cause a serious headache and can degrade the quality of traders because traders became depressed due to the many who suffered los

trading with hedge this process should be compared to some of the steps that we run as good as possible and still look at every process that sometimes we have to run with some of the steps that it can be applied to the analysis of market conditions which we are not so good so we should use hedge

mmja2003
2012-05-08, 07:45 PM
From this I have come to know about hedge. The word is completely new to me. You nicely described here at your own prompt. Go ahead for such thread in the future.

aarti
2012-05-15, 01:43 PM
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

moonletter
2012-05-16, 07:57 PM
Yeah, I actually implement hedging strategies to secure capital and to add my balance and margins, but I had not known the name of this strategy, thanks to Alamayreh that has defined the term hedging and its history in this thread.:respect:

iwan
2012-05-17, 09:00 AM
hedging is a technique whose goal in forex trading to lock in our losses when things go wrong from the OP position that we did before. hedging can also benefit us when we let go of the transaction which is profit, but we need to know which direction the trend will last.

andhwrey
2012-05-17, 11:41 PM
hedging is a technique whose goal in forex trading to lock in our losses when things go wrong from the OP position that we did before. hedging can also benefit us when we let go of the transaction which is profit, but we need to know which direction the trend will last.
for me,hedging are last options to choose,hedging invites new chance again to release that in correct and good timings.
those cant be succes everytime,in loss positions,there are more hard to traders to release hedging

waleedkhan
2012-05-18, 12:13 AM
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.

mujh lagta hai kay kafi achi knowledge di hai app na aur may agree karta hun is baat say aur is cheezon say new comers ko kafi faida ho sakta hai

sitiz
2012-05-18, 03:56 AM
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 ?

Hedging techniques glance it look easy, but if we do not have a specific strategy we will remove confusion when it is hedging, hedging techniques do well if it has the planned carefully so that there is an alternative to the release position so that at the end of trading we still could profit by a variety of techniques and strategies that we have

julianambas
2012-05-18, 05:56 AM
hedging is good if we understand how we will open lockingnya but if not then yag expected profit would be a disaster,
use hedging to minimize losses in principle is to make a profit. so if we do hedging the open market while the other side of the newly opened

abdul hamid p
2012-05-23, 09:22 PM
hello guys i just want to warn you all from this thief adnan alamayreh, he managed one of my accounts and made me lose over 8,000 $ in one night and promised me to give me the money back but he never did, over a year..and to prove my point just check this link out

https://forum.mt5.com/member.php?9716-Alamayreh80&

he was banned from more than a website and everytime he moves to another and keep stealing people's money///plz be careful he is bad man

first i'm so sory to hear it. your story intrested to me, many trader have great methode and theory. but they loss their capital in real account. ah i wont like this

md satu
2012-05-23, 10:37 PM
as i mentioned the edge is a way of trading is belied upon to get out of deals the loudest rate possible loss which required that the trader

mmja2003
2012-05-23, 11:06 PM
I do not understand clearly hedge from the description as I am newbie on forex education. Is hedge in simple definition, opening trade buy and sell position at a time. Please clear it with simple example so that newbie can understand easily.

smamanbd
2012-05-23, 11:43 PM
Hedge is an important thing about Forex trading.
It is is a trading strategy by which an investor seeks to reduce the risk.

hitesh
2012-05-25, 12:42 AM
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

hitesh
2012-05-25, 12:49 AM
be careful if you want to implement this system because we are going against the grain of our first entry, it is true we can minimize these risks. but do not get too far
to suppress

najaf12345
2012-05-25, 12:33 PM
hi
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 .

aamu
2012-05-25, 03:43 PM
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.

wahabplus
2012-05-25, 07:57 PM
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. Trader can limit the loss with it but they can't decrease the loss by using only hedging strategy and they may decrease the loss to minimum or zero or turn it to profit by using their knowledge and skills.

deep
2012-05-26, 12:19 AM
I would say that a hedge is simply opening two positions in opposite directions with the hope of making profits from both position. However the resource is also used by traders to lock bad trades such that the loss is stopped until they get to a point where they know that the price will reverse, and then they unlock the hedge.

rathod
2012-05-27, 06:16 PM
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

yaqoobali95
2012-05-27, 07:59 PM
hedge is a trading stratigy by which an investor seeks to reduse the risk of an adverse price movement on a security. making an investment to reduce the risk of adverse price movement in an asset.

manibhai2012
2012-05-27, 08:21 PM
According to my knowledge of the Forex market Hedge is the formula to hack the market I think that buy and sell from the same place is known as the hedge it is applicable when the trader fails to find the trend of the Forex market.

riya
2012-05-29, 08:09 AM
In my way of trading i never liked hedging if i fudge . then it SHOULD be the only alternative acquirable to me and no opposite choice can be victimised . i believe it shows that we arent trusty around the market and happening and we are guessing of the direction and this can be harmful !

jmsblack18
2012-05-29, 08:08 PM
be careful if you want to implement this system because we are going against the grain of our first entry, it is true we can minimize these risks. but do not get too far
to suppress

If we do trade with hedging that doesn't mean we going against our first entry, in contrary such strategy is built to safe our wrong decision in first entry. For me the simple way to reduce stress and double our income in end of closing position is using the hedging or double hedging method.

GembeL_FOREX
2012-05-29, 10:11 PM
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.

true that you say that hedging is one strategy for maintaining the position of the value of a currency or goods. and the hedge is not recommended for any transaction, are temporary only.

kakatua
2012-05-29, 10:45 PM
I suppose that the hedge is a way of trading is relied upon to get out of deals, the lowest charge practicable loss which requires that the trader has brimfull pro technical analysis because the security method is real dicey and sometimes you can not criterion transactions

kalponick
2012-05-30, 05:32 PM
I really dont understand hedging that much.. Just know that buying a pair with same stop-loss and take profit target with higher risk to reward ratio.. But I like to play simple.. the way I trade, it do not support hedging at all.. This is why I use classic stop-loss and take profit to trade with simplicity..

didikebenaran
2012-05-30, 05:50 PM
hedging is a method where one trader can buy and sell a pair at the same time to maintain and save his equity.. even hedging helps in controlling free margin which enables a trader to do transactions and increase the equity when hedging is involved in the trading

but the hedging trading we have to trade that might make you better with good analytical and be able to make a margin so that you will waste so we are careful about using this hedging

najaf12345
2012-05-30, 07:04 PM
Hi
Hedging typically is really benficial trading technique. it prevent us from a very big reduction and lock the little profit. hedging is certainly not so easy
and additionally simple we will need a high calculation for applying this device properly,

ernestina
2012-05-30, 07:12 PM
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.

Hedging is not accepted by all brokers and some broker use a rule called first in first out. This mean that you will close the first trade you set first even if it is going in loss. I do not like these type of brokers and I prefer Instaforex who allow hedging to occur on trading platform.

purohit
2012-05-31, 02:33 PM
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 .

pdatta20
2012-05-31, 03:44 PM
A hedge is simply a term used to describe an investment partnership setup by a money manager. It can take the legal form of a limited liability company or a limited partnership so that if the company goes bankrupt, the creditors can't go after the investors for more money than they've put into the fund.

moonletter
2012-05-31, 10:25 PM
I actually implement hedging strategies to secure capital and to add my balance and margin, hedging to offset the trade was floating Mingus. I use the hedging combining the longterm. Since I also like taking risk if future prices are not coming back, but I was trial and error with this strategy, so it does not have a big profit.

biyen
2012-06-01, 10:59 AM
hedging defenitions are protecting an existing or anticipated position from an unwanted move in the foreign currency exchange rates. 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

ashwini
2012-06-01, 12:19 PM
hedge is a double edge sword. as u say. but if \we use it perfectoly.. then we will be easily make good profit, but u need good backup money for this. when ever one do hedge .. when his trade is going to losse. but he know .. that now or later the marekt is favour on him. so he do the hedge. and wait for the right moment for out form the hedge.

pkdoo7
2012-06-01, 01:05 PM
don't use hedging method , this is not suitable for u if you are new
i think we should take minimum risk with lowest lot size in this method
but mostly traders can't hold their losses in trending market and if any strong trend has 400-500 pip movement in one direction
it can destroy your accounts if you close one position against opposite position , losses are increased and spotting reversal through divergence is not become success full some time , so stay away from hedging method it is not too profitable and have great risk .

Rizwan
2012-06-06, 10:01 PM
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

Hedging is better appropriate for huge deposits so that the potential risks of losing is minimized and the trader can enjoy something close on an insurance of some sort.
Stop loss will be ideal for other traders who cannot have the huge amounts that go with hedging.
It's also convenient to stop loss, and thereby restrict how much we can lose on any one trade position.

waqtitrader
2012-06-07, 10:28 AM
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.

ek he point parr buy or sell karna main to app ko yahi kahoun ga main to forex trading main na jab new new aya tha na to mugh ko es main yahi strategy sab se ziyad apasand ai ha es liye main es ko kafi acha manta houn

anoha
2012-06-07, 10:30 AM
Hedge means the open character unlike the deal that you opened on the same pair ..
For example, if you have opened the purchase of a pair euro dollar you open the package Beah also on the same pair .. This is the hedge but there are many brokers, but not allowed by the mediator allows hedges Insta

reazforex
2012-06-07, 09:21 PM
Hedging is a very helpful trading procedure. It avoids us from facing a dreadfully big loss and also padlocks our little profit. Very often I try to do hedging but do not attain success. Hedging is not so straightforward and easy. I am trying to learning hedging and still now studying many ebooks related to hedging.

kubi
2012-06-08, 11:51 AM
वित्त में बचाव , किसी व्यक्ति के ऋण जोखिम को कम करने के उद्देश्य से बाज़ार में स्थापित एक ऐसी स्थिति है, जो अवांछित जोखिम के प्रति, अन्य बाज़ार की किसी प्रतिकूल स्थिति में मूल्यों के उतार-चढ़ाव के मामले में, ऋण जोखिम के प्रति-संतुलन का प्रयास है. इसे हासिल करने के लिए बीमा पॉलिसी, वायदा संविदा, विनिमय, विकल्प संविदा, काउंटर पर कई तरह से शेयरों की ख़रीद-बिक्री और व्युत्पन्न उत्पाद और संभवतः सबसे लोकप्रिय भावी संविदाएं जैसे कई विशिष्ट वित्तीय साधन मौजूद हैं.1800 के दशक में कृषि पण्य क़ीमतों में पारदर्शी, मानक और कुशल बचाव-व्यवस्था को अनुमत करने के लिए सार्वजनिक वायदा सट्टा बाज़ार स्थापित किए गए; अब इनमें ऊर्जा, बहुमूल्य धातु, विदेशी-मुद्रा के मूल्यों, तथा ब्याज दर उतार-चढ़ाव के लिए बचाव-व्यवस्था हेतु भावी संविदाओं को शामिल करने के लिए, इन्हें विस्तृत किया गया.

Xasir
2012-06-08, 11:54 AM
Hedging is open to buy and sell a few people but some are both up and down, the income when it goes on then buy it, hoping to leave benefit for someone to go to complete angnagbebenta benefit, but also to duplicate the double loss or gain, but for me, I do not want to ....

aarti
2012-06-10, 12:03 AM
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.

tashnotashi
2012-06-10, 09:47 AM
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.

han ap bhi sahi ho or main jo hedging ka concespt rakhta houn na woh ye ha k mugh ko jo pata chal ha hedging ka matlab ek he point par buy or ek he point parr sell karna ha ek he pair ko main to yahi janta houn

hemaelsisy
2012-06-11, 12:54 AM
Hedge is weapon we can use it to make very good profit or it lead us to kill our balance couscous it need
people who have very good experience in this business

moomena
2012-06-11, 02:01 AM
Hedge is weapon we can use it to make very good profit or it lead us to kill our balance couscous it need
people who have very good experience in this business

yes hedge is opening two trade with same lot but reverse .it.s good to save your money from lose if market reverse on you and you don't have big capital but the problem how to get out it it,s difficult and need more time to find good point to exit this problem

abdullahmuslim
2012-06-11, 10:21 AM
I know hedge is to open three members of each pair of third order there is one pair of hegemony, and this we can do if we are going in the trading losses are very detrimental to us, at this moment we are just implementing hedging strategies

abdillahikbal
2012-06-14, 11:59 AM
I know hedge is to open three members of each pair of third order there is one pair of hegemony, and this we can do if we are going in the trading losses are very detrimental to us, at this moment we are just implementing hedging strategies

to hedge my bets a new strategy requires endurance and balance and the ability to analyze the market, we will be confused by the circumstances in which market prices tend to tug each other

ayakcalysta
2012-06-22, 03:13 PM
Hedge is weapon we can use it to make very good profit or it lead us to kill our balance couscous it need
people who have very good experience in this business

thanks for the information that you provide to us all. we find the information you have provided to us is very beneficial to us, and especially for the novice trader. Hedge if it is true is a good weapon for us to use in making a profit then we will also use this method. thank you

affan9011
2012-06-22, 05:33 PM
I want to say that a avoid is simply option two positions in word directions with the wish of making profits from both berth. However the inventiveness is also victimised by traders to confine bad trades much that the loss is stopped until they get to a punctuation where they bed that the damage leave contrary, and then they unlock the circumvent.

darksaimon
2012-06-22, 06:04 PM
the Hedging is real serviceable trading model. It prevents us from a real big loss and also confine our younger profit. Often i deprivation to do security but fails. Equivocation is not so relaxed and ovate. Can any embody here release me any communicator from where i can get its wake less noises

ermaniso2011
2012-06-23, 12:40 PM
hedging is very powerful yet sensitive strategy.if a trader without knowledge will hedge he can loss all of his capital anytime but professionals knows how to make good profit from it.it basically works like opening opposite positions at the same time and wait for the right time to close one side and make profit from the opened one.it is a good strategy if you are receiving rebates but it requires very high discipline.you have to prefer to close your losing positions first not the winning one.and it is very hard to do it for most of the traders.

sahed_a
2012-06-23, 12:43 PM
What is hedging?

Definition Coverage: Coverage is a trading strategy where an investor seeks to reduce the risk of a negative price movement of a commodity or currency or security owned in a market by taking a position or group of positions in other markets. He started this "coverage", established general practice, when the futures markets in late 1800 to allow protection of the efficiency of market prices of agricultural commodities. The risk mitigation process expanded over the years to include the future of high-risk currencies, precious metals, energy, and interest rates. Although futures contracts are the most popular hedging strategies, and other compounds commonly used from the front, swaps, options, insurance policies, and many types of products through the meter. An investor using this strategy, if you are unsure of what the market can do and want to protect your downside risk. Development of the foreign currency does not stop the system is necessarily in coverage, "" From This can be accomplished in the same market, but does not reduce the risk of landing. Hedge requires an analysis of costs and revenues as hedging instruments are not required to pay premiums and commissions or spreads. Generally, the investor aware of the options for selling the call option to cover the cost of buying a put option. And there are security measures to protect low and profit potential, while the call limits the mouth, and thus "ensure" the security benefits or money.

kalponick
2012-06-27, 11:38 PM
With proper risk to reward ratio hedging can be profitable in trending market.. But in ranging market you can face horrible losses in your trading... there are some people who hedge differently.. Like Short in GBP/USD but long in AUD/USD and EUR/JPY.. I am trying to learn why they do that.. Because still I am not familiar with this kind of trading..

Rashel Patoary
2012-06-28, 03:23 PM
An example of a hedge would be if you owned a stock, then sold a futures contract stating that you will sell your stock at a set price, therefore avoiding market fluctuations.

yulianto470
2012-06-28, 05:45 PM
to hedge my bets a new strategy requires endurance and balance and the ability to analyze the market, we will be confused by the circumstances in which market prices tend to tug each other
heck yes brow significant amounts of capital and resilience of our capital's lots of very trpenrting if we are to understand that we do
not tranding dag dig dug more and more easy to do tranding and away from the margin call is to be avoided tander

yogesh
2012-06-28, 05:54 PM
Hedging is a technique to take advantage of volatilty but limiting the losses, for every buy position we open a sell position and as loss grows at one trade profit grows at another thus you cannot lose anymore than the spread.

kalponick
2012-06-29, 12:13 AM
Hedging is a technique to take advantage of volatilty but limiting the losses, for every buy position we open a sell position and as loss grows at one trade profit grows at another thus you cannot lose anymore than the spread.

Then what will be the profit by this way?... This is why you need to use higher risk to reward ratio like 1:3... then you will lose one time but win 3 time... Like both your buy and sell order will have 1% stop-loss and 3% profit target.. then at the end of the day you will have some profits..

sammy
2012-06-29, 12:14 AM
hedge is a system used by many traders who doesnt use take profit technique and for safety like to lock in some profit... here in this system you can close a part of ur trade in winning position and let the other part go with a hope of profiting more..

obaid2012
2012-06-30, 02:22 PM
The cover is a very useful method of negotiation. This is a major loss to us and prevent us from making a little profit, however Natalina. I want to cover, but often fail. Coverage is not so simple and easy. There must be a body where I can get his deep knowledge of a source that I can do?

sgiant
2012-06-30, 10:12 PM
Hedge technique is not easy to do, must have sufficient material. I think a lot of traders who have had experience using this technique to reduce the level of losses.

fxquest
2012-06-30, 11:12 PM
For each order we open for buy we open an order for sell - in this way our losses do not grow as if one trade get into losses another goes in profit, this is a safer way to trade volatility.

mhchomsi
2012-07-01, 08:56 AM
For each order we open for buy we open an order for sell - in this way our losses do not grow as if one trade get into losses another goes in profit, this is a safer way to trade volatility.

in a trade we want profits, sometimes wishes do not always walk normally. Sometimes we get loss precisely to minimize such harm then we open a new position opposite the position of the first. that is hedging. by using special then be changed into a loss to profit by the right moment

hasan0012
2012-07-01, 03:42 PM
A hedge or hedgerow is a line of closely spaced shrubs and tree species, planted and trained to form a barrier or to mark the boundary of an area

challenger ab
2012-07-02, 04:15 AM
hedge is away to save your money if you think that you will face call margin or you think you will lose it as soon as so you make it and you can make it by open two trade one buy and one sell with the same lot so the two trade opposite the direction and stop the decrease of money but this method hard to exit from it and before do it learn how to exit it

andrian
2012-07-02, 07:53 AM
I think hedging is very good, because the hedge, we have the hope to avoid such thing as stop loss hunter, even if the results are negative, it's not a big problem, the important thing is to always increase our equity every day,

taufiqbd
2012-07-02, 01:37 PM
Hedging is a trading strategy, where a trader lock is loss in a specific price, when a trader hedge then price movement do not affect his trading. When a trader face loss and market rapidly go against him then a trader hedging. Hedging means same value sell and make same value buy then lock your loss when you do it.

anoha
2012-07-03, 03:46 AM
Hedge means Fath, 2 deal one purchase and the other sale. Suppose you you open a long position is reflected price you so much and I felt that the market will take the opposite direction you open the sale of the size of a multiplier to compensate for the loss in the first deal and get out at a profit .. and there are a lot of hedging strategies, but a very serious .. and you need a large capital ..

challenger ab
2012-07-03, 03:53 AM
hedge is good strategy to who will lose all his money and face call margin but it,s difficult to exit from it and want from you to focus on the chart to find strong point to exit it but im try to not make it because every time im lose with it so im learn to put alternative solution to my bad trade

aum
2012-07-07, 04:53 PM
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.

sammy
2012-07-07, 04:55 PM
hedge is like u put a trade in buy and put another trade in sell, after a few moment u try to figure out the momentum of price movement and den close the losing position, earns you more profit. but this is a bit risky business.

fizmhd
2012-07-07, 09:16 PM
hedging basically is opeing a sell and buy at same point ..
but it is done to do manage your capital ..in situations ... where trade comes against you ...

pepoo
2012-07-07, 11:59 PM
Hedge means opening a position contrary to the direction of the deal open ... If I had you open a long position and shortly after, for example you open the sale of this so-called shift is always used in the current reversal on the transaction and make sure that he will remain in the new direction job by Bfath deal hedge Lott multiplier to compensate for the loss of the deal first and also to get out a good profit ..

challenger ab
2012-07-08, 03:08 AM
If we do trade with hedging that doesn't mean that we are going against our first entry, in contrary such strategy is built to safe our wrong decision in first entry. For me the simple way to reduce stress and double our income in end of closing position using the hedging or double hedging method.

i know about hedge and the meaning of it but how to exit it i Waite for good chance to exit it but it,s very difficult with the bad market and make me Waite all day to try to exit it .how can i exit it easily please?

amero
2012-07-08, 03:38 AM
Hedge is to open the package in the opposite direction of another deal that is the meaning of hedge .. and there are also strategies for the exercise of this method, but contains the risk is very high and need to be the capital of a large no less than $ 5000 and also the commitment his administration because the hedge needs to be complications Ktheh very possible that up to 6 complications in each package

oktaria
2012-07-08, 01:31 PM
Genuine, to turn a bargainer in essential of effortlessness to always see forex knowledge forex because it is rattling propelling, so we should be able to rest abreast of forex transactions in request to change to our

computers
2012-07-08, 02:05 PM
-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.

jamilktba
2012-07-08, 06:47 PM
Hedge is to open the package in the opposite direction of another deal that is the meaning of hedge .. and there are also strategies for the exercise of this method, but contains the risk is very high and need to be the capital of a large no less than $ 5000 and also the commitment his administration because the hedge needs to be complications Ktheh very possible that up to 6 complications in each package

Exactly the hedge is to open two different positions in the same pairs buy and sell positions !! i think the most of the expert trader use this technique in the place of the stoploss because its too safe than the stoploss !

aum
2012-07-09, 02:23 PM
hedging is very powerful yet sensitive strategy.if a trader without knowledge will hedge he can loss all of his capital anytime but professionals knows how to make good profit from it.it basically works like opening opposite positions at the same time and wait for the right time to close one side and make profit from the opened one.it is a good strategy if you are receiving rebates but it requires very high discipline.you have to prefer to close your losing positions first not the winning one.and it is very hard to do it for most of the traders.

antosco
2012-07-09, 07:23 PM
Hedging is a method that is employed when a traders is experiencing a losing position and thinks that the market would definitely favour his position but instead of stop the position with loss or allowing the account to float in loss which might result to a margin call, he opens a position opposite to the initial position which helps keeps his margin stable.

shofiullah
2012-07-09, 10:49 PM
every part of something has two sides one positive and negative so does hedging has, one one way it is very useful in saving the account and equity as well on the other hand it is hard to be lucrative of the positions.. may be through hedging one decrease the amount of risk that can happen in account but also there is a risk of getting into negative trade position.

challenger ab
2012-07-10, 01:46 AM
yes hedge save our money from call margin but we must learn how to exit it because it,s very difficult to exit it easily and you must concentrate on the chart to find good point to enter the market and exit it and Waite for the lose trade to decrease the loss to good limit and close it

antosco
2012-07-10, 01:50 AM
No, I dont reccomend you to try hedging methods in your trading strategies, hedging just make us confused and we got problem about how to exit from market, sometimes they are so many traders who did hedging and martingale methods, they really use high risk but low reward,

I also am not in support of hedging method because it could be very confusing sometimes. Hedging system needs the trader to have sound mind and proper understanding of how to use hedging to minimize loss before he can think of hedging method.

muhammad
2012-07-10, 07:28 PM
Hedging is a method that is employed when a traders is experiencing a losing position and thinks that the market would definitely favour his position but instead of stop the position with loss or allowing the account to float in loss which might result to a margin call, he opens a position opposite to the initial position which helps keeps his margin stable.

correct sir, of course, hedging strategy requires experience very much, I think it is not easy to do because this strategy requires precision in the placement of lots and also the right timing so that we do not experience an increased loss

antosco
2012-07-11, 01:56 AM
hedge is about buying and selling in same size,so our positions are locked,but hedging cant be used for only protect positions with less experience. we should use hedging as last resort to save our account .

You are right hedging well defined is when we buy and sell in the same size so that our positions we be locked. And like you said, it is good for us to only use hedging when it is our only solution to get out of a very difficult position, otherwise hedging is not advisable.

cozard007
2012-07-11, 01:59 AM
Well, traders knows how to hedge better than others, i can say that many traders are also lossing a s a result of hedging also, this is a real thing of concern for traders that cant settles deal at ones(Stoploss)

merajfx
2012-07-11, 02:02 AM
Hedge is very known in casino.most of the people in foreign like this it also have some technique to gain.but if and one do not any technique he must be fail because its very difficult than forex.it has also two side gain and loss.

sparkle
2012-07-11, 11:12 AM
Hedge is one kind of business technique. it benefit is huge. But it is not easy. it is a risk business. In this business way any one can loss his capital. In this way of trading you need huge of experience.

lights
2012-07-11, 12:46 PM
hedging is a technic when we open an opposite order with the same lot,, example, we make order buy 1, after that the price move 10 pips, we make an order again sell 1 lot in the current price

gazrux519
2012-07-11, 03:10 PM
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 ?
I totally agree trading occurs normally in doubt between buy or sell and thus require hedge. when the market reversed course as expected not to hedge is not much to worry.
:)

VS69698159
2012-07-11, 05:44 PM
hi friend do you know about a hedge it dangerous for trading please never come near it

hendarto
2012-07-11, 06:09 PM
we can save the account of the Margin Call to the hedge strategy, using this strategy, if any, as may have minimal, but for those not used then this strategy will make the confused close position.

challenger ab
2012-07-12, 03:53 AM
hedge is good idea if you feel danger on your account and the market will take it so you must make it and after that close the trading with earning but left the loser one but wish that market will decrease in the other direction to reduce the loss to you

kamot
2012-07-12, 05:29 AM
This Parry is a trading strategy whereby an investor seeks to concentrate the seek of an unfavourable cost change on a certificate, artefact or currency that he owns in one marketplace by winning a lieu or combination of positions in different markets. This "protection" pattern began when public futures markets were entrenched in the dead 1800s to provide for efficacious price endorsement in the farming commodity markets. The venture mitigating writ has expanded over the geezerhood to let futures contracts for security currencies, wanted metals, push, and welfare rates. Although futures contracts are the most favourite occupation for protection strategies, otherwise vehicles typically used are forwards, swaps, options, protection policies, and more type .

joget
2012-07-12, 06:28 AM
hedging is to open two or more trading positions in the opposite direction with each other in the same time and in one currency pair. In my experience, you should avoid this strategy, because it will hamper your mind mentally to continue to follow the market movement.

aminos
2012-07-12, 07:15 PM
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.

halwaniptba
2012-07-12, 10:26 PM
The hedging is one of the strategy to limits losses, by opening an opposites directions with the originals positions wich already loss, so the floating minus can be stopped really !!

lap
2012-07-12, 10:41 PM
For each order we open for buy we open an order for sell - in this way our losses do not grow as if one trade get into losses another goes in profit, this is a safer way to trade volatility.

Dragon
2012-07-13, 11:31 AM
Yes, alright, i can say that hedging is not so easy and simple. it is a trading technique that is very good for trader. especially for beginner. It can help us avoid a very big loss and also lock our little profit.
Thank you very much

cozard007
2012-07-15, 05:46 PM
Really hedging is very good, the fact that some brokers rejects and forbids it makes me skeptical about this kind of trading startegy as not to affect my withdrawals...

deepak
2012-07-17, 01:07 PM
hedging is very powerful yet sensitive strategy.if a trader without knowledge will hedge he can loss all of his capital anytime but professionals knows how to make good profit from it.it basically works like opening opposite positions at the same time and wait for the right time to close one side and make profit from the opened one.it is a good strategy if you are receiving rebates but it requires very high discipline.you have to prefer to close your losing positions first not the winning one.and it is very hard to do it for most of the traders.

---------- Post added 07-17-2012 at 01:07 PM ---------- Previous post was 07-16-2012 at 11:08 PM ----------

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.

mariomuhafsa
2012-07-17, 09:15 PM
The Hedge is weapon we can use it to make very good profit or it lead us to kill our balance couscous it need peoples who have very good experiences in this business really !

ahmdadafa
2012-07-17, 11:54 PM
I believe that with propers risk to reward ratios hedging can be profitables in the trending markets, But in ranging markets you can faces horribles losses in yours trading and there are somes people who hedge differently really !!

dalaxapola
2012-07-18, 12:39 AM
The hedges is the away to saves yours money if you think that you will faces the call margins or you think you will loses it as soon as so you makes it and you can makes it by open two trades one buy and one sell with the same lot so the two trades opposites the directions and the stop the decrease of money but this method hardly to exit from it and before do it learn how to exit its !!

kltbanptbnyab
2012-07-18, 01:05 AM
The hedge is to open two differents positions in the sames pairs buy and sell positions !! i think the most of the experts trader suse this techniques in the places of the stoploss because its too safes than the stoploss really !!!

uttkal
2012-07-18, 01:44 AM
Mai aap ke bat se shamat hu par isko mange kaise karte hai. Yadi mai 1 ka lot buy karat hu aur is trade me muzko loss dikhta hai to mai kitne ka lot sell karuga. kya 1 ka lot ya usse jyada ka. Yadi 1 ka lot sell karta hu to buy ka loss jyada hota hai. Kay aap muzko brief me explain karoge.


Hedging ek aisa tarika hai jisme ek trader kisi ek pair ko buy bhi kar leta hai aur sell bhi kar leta hai
aisa karne se wo apni equity bachata hai jisse ki uska account margin call tak nahi jata..aur aisa tab bhi karte hai jab traers ko lagta hai ki ab trend change ho gaya hai aur wo apni deal ko loss me nahi kaat ne dena chahte to wo us deal ka loss dusri taraf deal khol ke barabar kar lete hai..bahut se trader hedging use karte hai lekin naye tradres isme uljah jate hai

antosco
2012-07-18, 01:55 AM
I have come across some cases when traders say that they would rather prefer to use the hedging system than to use stop loss level, but as for me the opposite is true, I would rather prefer to use stop loss for my trades than to use hedging system.

vbalan
2012-07-18, 12:55 PM
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.

forexstudentforever1
2012-07-18, 01:46 PM
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.Hello Everyone, the main reason that you want to use hedging on your trades is to limit risk. Hedging can be a bigger part of your trading plan if done carefully. It should only be used by experienced traders that understand market swings and timing. Playing with hedging without adequate trading experience could be a disaster for your account.Thanks.

sgiant
2012-07-18, 04:01 PM
This method is best used to minimize losses. However, using this method must have a large capital, and holding floating long enough.

rana157
2012-07-18, 05:22 PM
hedge main ne kabi ni kia.wese itna pta ha ke agr ap aik he volum pe sail ya buy ke trade lagate han
to ap agr is ko hedge karte han to phr ap ko jo loss ha wo lock kar deta ha thore profit main.mere to yahi advise ha ke hedge ni karna chahye.

yasiraziz
2012-07-18, 07:27 PM
Hedging ak forex satrategy hai jo k buhat useful hai is sy ap buhat bary loss sy bach jate hain
aur ap ka jo profit hota hai usy b lock karta hai ye buhat sy trader use karta hai loss sy bachne k liye

mariomuhafsa
2012-07-18, 07:46 PM
The traders knows how to hedgeq better than others and i can say that many traders are also lossing a s a results of the hedging also, this is a real thing of concerns for the traders that cant settles dealing at ones(Stoploss) !!

sammypt
2012-07-18, 07:51 PM
hedging some same currency is a danger game , if u dont know what u doing
for that kind of game i think is bether a robot to do it
safer and mats is made almost instant

skboyra
2012-07-18, 08:17 PM
hedge is a type of trading technique where you can apply the stop loss or the take profit system. it helps to reduce the probability of loss in the trading. but overall it also reduce the profit amount. but it is very effective for the novice trader.

goldenmember
2012-07-18, 08:52 PM
I perfectly agree with your explanation you have made in the opening post. I do not like hedging at all, because it really puts double the risk on the trader. You cannot make money in the long run with a hedge and in the end you lose money. You end up paying more spread and it puts more strain on your margin. It is not suitable at all for a new investor or trader.

ahmdadafa
2012-07-18, 09:05 PM
I can say that hedging is to opens two or more trading positions sin the opposites directions with each other in the same times and in one currency pairs and in my experiences, you should avoid this strategy, because it will hampers yours mind mentally to continues to followsing the markets movements really !!

dalaxapola
2012-07-19, 03:01 PM
The forex market is a globals fundamental analysis markets and It is world wise foreigns money exchange markets and It base on the analysis and the great knowledge and well experiences helps to earn a lot of money and In shortly well performers can earn money easily really !!

Sun-Moon
2012-07-20, 12:24 AM
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.

Thank you for your post firstly.
I think if a expert group of expert traders work together, they can manage their trade in this way. However, I do not like it at all.

suresh
2012-07-21, 12:25 PM
thanks for the information that you provide to us all. we find the information you have provided to us is very beneficial to us, and especially for the novice trader. Hedge if it is true is a good weapon for us to use in making a profit then we will also use this method

onbtavptbav
2012-07-21, 02:38 PM
The hedge is weapons we can use it to make very good profits or it lead us to kill our balance couscous it need people who have very good experiencesin this business really !!

antosco
2012-07-22, 01:42 AM
Hedging is very helpful, if a trader uses hedging in the time of loss, then we might be able to escape from loss and turn his account to a winning one.
But as for me I don't use hedging because I believe that hedging is very complicated and it needs good skills and knowledge to use it.

norix
2012-07-22, 03:11 AM
Hedging is very helpful, if a trader uses hedging in the time of loss, then we might be able to escape from loss and turn his account to a winning one.
But as for me I don't use hedging because I believe that hedging is very complicated and it needs good skills and knowledge to use it.

but also need to be careful, yes, I think when we look at the position headgig should already start before because we know lots that will be used to lock or cover losses from the initial position was

rihabrahouba741
2012-07-22, 06:30 AM
The hedging is very positives trading performances and It prevents us from a very roomy loss and and lock ours littles profits. Often i would like to figures out prevarications but fails.The Hedging is not so at ease and trouble-free !!

ahsankhan
2012-07-22, 07:32 AM
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 just want to warn you all from this thief adnan alamayeh he managed one of my accounts and made me lose over 8000$ is one night and promised...

Sri Hartono
2012-07-22, 07:56 AM
Hello Everyone, the main reason that you want to use hedging on your trades is to limit risk. Hedging can be a bigger part of your trading plan if done carefully. It should only be used by experienced traders that understand market swings and timing. Playing with hedging without adequate trading experience could be a disaster for your account.Thanks.

all right, but not all businesses are going to do a risk. there are key words to success: the greater the risk of a business, the greater the benefits that can be generated. here we need to do is understand the risks to be faced.

hmkowsar
2012-07-22, 09:53 AM
i feel it shows that we arent sure about the market and movement and we are guessing of the direction and this can be dangerous.

syahroni
2012-07-22, 10:32 AM
I think a hedge is simply opening two positions inopposite directions with the hope of making profits from both position.but i dont like hedging as it makes me feel unhappy always due to one trade losing always .
A hedge fund is an investment fund that can undertake a wider range of investment and trading activities than other funds, but which is only open for investment from particular types of investors specified by regulators. These investors are typically institutions, such as pension funds, university endowments and foundations, or high net worth individuals. As a class, hedge funds invest in a diverse range of assets, but they most commonly trade liquid securities on public markets. They also employ a wide variety of investment strategies, and make use of techniques such as short selling and leverage.

Hedge funds are typically open-ended, meaning that investors can invest and withdraw money at regular, specified intervals. The value of an investment in a hedge fund is calculated as a share of the fund's net asset value, meaning that increases and decreases in the value of the fund's assets (and fund expenses) are directly reflected in the amount an investor can later withdraw.

Most hedge fund investment strategies aim to achieve a positive return on investment whether markets are rising or falling. Hedge fund managers typically invest their own money in the fund they manage, which serves to align their interests with investors in the fund.[1][2] A hedge fund typically pays its investment manager a management fee, which is a percentage of the assets of the fund, and a performance fee if the fund's net asset value increases during the year. Some hedge funds have a net asset value of several billion dollars. As of 2009, hedge funds represented 1.1% of the total funds and assets held by financial institutions.[3]As of April 2012, the estimated size of the global hedge fund industry is US$2.13 trillion.[4]

Because hedge funds are not sold to the public or retail investors, the funds and their managers have historically not been subject to the same restrictions that govern other funds and investment fund managers with regard to how the fund may be structured and how strategies and techniques are employed. Regulations passed in the United States and Europe after the 2008 credit crisis are intended to increase government oversight of hedge funds and eliminate certain regulatory gaps.[5]

nahial
2012-07-23, 01:15 AM
Hedging is often considered an advanced investing strategy, but the principles of hedging are fairly simple.

ossama
2012-07-23, 01:24 AM
Trade is a very risky the hedge is may not to be held deals of this kind without the study and a good plan

forexstudentforever1
2012-07-23, 11:34 AM
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/answers/forex/forex-hedge-and-currency-hedging-strategy.asp#ixzz1lvmhFCiIThanks a lot for sharing your thought. I have read that whole article which is in your link.

biyen
2012-07-30, 09:34 AM
Hedging is seen as a safety net for many Forex traders. Should the market move against them, the impact on the trading account will be less severe than if they had held the position un-hedged. Another important thing to consider is that many Metatrader EAs are programmed to use hedging to offset risk

emir
2012-07-31, 08:28 PM
When an exact hedge is applied, meaning that you buy and sell the same amount of the same currency, your net position in the market is zero . You are buying and selling the exact same thing at the exact same time, so it doesn't matter which way the market moves, the gain in one trade will be exactly offset by the loss in the other trade

kalponick
2012-07-31, 09:16 PM
I am using a little bit of hedging by myself.. although i am trying to build a hedging strategy by myself.. with some knowledge and experience I think I can build a good one.. but no matter what you do, in hedging you will face some losses for sure.. I am just trying to tilt the odds in my favor with higher risk to reward ratio..

muhammadatif
2012-08-07, 01:26 AM
According to hedge is not a good trading strategy I have tried it. Hedge trading strategy can save you account from closing but your all profit is going in loss. You cannot earn profit with this strategy because your profit provide coverage to your loss.

shaikrazak
2012-08-07, 03:16 AM
Hedging is the practice of taking a position in one market to offset and balance against the risk adopted by assuming a position in a contrary or opposing market or investment. The word hedge is from Old English hecg, originally any fence, living or artificial. The use of the word as a verb in the sense of "dodge, evade" is first recorded in the 1590s; that of insure oneself against loss, as in a bet, is from 1670s. [2]

golam rabbani
2012-08-07, 12:36 PM
hedging is a way which help a trader form odd situation. some days ago i was hedging my one account thats why my now is alive otherwise my account is vanished.

wending
2012-08-09, 09:02 PM
I am very glad to enjoy this thread here.What I have learned hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.For me,I do not like to use hedge strategy,because it is so difficult for me to unlock the pair that i use hedge startegy there.

challenger ab
2012-08-11, 01:18 AM
hedge it,s mean that you open two position one but and one sell and the both have the same lot volume we use it when the market reverse on us by big loss and we fear from facing call margin before profit it or the market return to it,s original direction but it need good chance to exit it because it,s not easy to do it

abbey ak
2012-08-11, 08:23 AM
okay i think you have educate me right now because i have been trying my best to see that i know much about the Hedge and now i think i can trade based on the Hedge right now because i read a lot of books and yet i don't get the point regarding the Hedge but right now i think am very much okay in the understanding of the Hedge

abbey ak
2012-08-14, 08:13 AM
thanks very much for you information regarding the Hedge and if we can get and expect in the forum to kindly help us with a very clear and understandable picture this will surely go a very long way in the understanding of the Hedge strategy because i will so much like to trade the Hedge strategy based on your analysis

akshay1728
2012-08-14, 08:55 PM
hedge is nothing but buying and the selling at the same point so your account will get blown but you should take care that you dont get in loss after closing your poiutions

agie
2012-09-07, 04:31 AM
hagde is more often used to update the loss that we experienced with open transactions after the position we were wrong predictions, so as to restore the loss that we have experienced we go again open positions, but we also have to be careful that our predictions are not exact because the emotions are less volatile ,

speed2
2012-09-07, 05:33 PM
im heard about hedging before but i think it,s not good we can make support position to the already position i thin it,s very good and better than hedge .but we can use it if we will face call margin and our capital decreased to be in the end we can make it but we must try to save our trading and our capital from needing hedge

Rami
2012-09-09, 07:57 PM
according to my point of view , hedge is an art , must be known
by the most professional traders in fore x

fx.rainfall
2012-09-10, 12:44 AM
hedge means two way order. hedging strategy long term trade ke liye achha hota hai. is me buy and sell order ek sath dena hota hai.

BaHaaFxTr
2012-09-10, 01:12 AM
to this moment I post that I cant make an strategy of hedge, I cant find some good book talk about it in details i wish to find it so any one can help me please do it thank you sir.

roopesh11
2012-09-10, 08:27 PM
Mere hisab se hedging ek bohot hi acha option hai jo hame aise situation me save karta hai jab humara wrong trade market me entry ho jata hai aur hum loss me rehete hain us waqt hum hedging option use kar sakte hain. Agar hum ye option use karenge to hum log market me safe rahenge.

erumozor
2012-09-10, 10:07 PM
That is the truth hedging does not help in trading at any giving period of time because you fkund yourself remaiiog in t he same place not making any profit

haryadi88
2012-09-11, 07:47 PM
I think hedging should be done by a trader that have proper experience not a newbie as it could be very disastrous sometimes if you don't know how to manage your trade.

I am agree with you. Doing hedge is sometimes have a risk if we cann't know exit and entry points. With knowing exit points, we can doing hegde, but I am prefer using stop loss and take profits on my trade

Amitpaul
2012-09-15, 10:33 PM
actually hedging is the really beneficial trading technique.it helps to prevent from a very big reduction and lock the little profit.hedging is not so easy and additionally simple.

gerrard
2012-09-16, 12:50 AM
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.

sinaga
2012-09-16, 10:40 PM
Hedging is a strategy to open up trade in the opposite position. hedging requires a great trading capital, and we have been able to set management. good hedging is used to market is sideways, but if the market is trending will be very bad.

nyiel100
2012-09-19, 01:05 AM
hedge could be mean open buy and sell at a time,and when the market move we will be have two opening position the profit one and the floating loss,some traders closed the profit position and let the floating minus and waiting for the price retrace and minimize the floating minus,and there they can get profit

chrisfx
2012-09-19, 01:53 PM
Hedge is the worst thing in the world

nasim39
2012-09-19, 03:54 PM
nice...by increasing the proportion of risk in the cloud every time multiplied by the lute to enter the deal, so you might use capital management firm.

cfxsignals
2012-09-20, 04:18 AM
Hedging is bad news if you have to do it. If you are considering doing it then you are going to be on the way to losing money. If you hedge then you have two difficult trades to manage instead of one. When you close one, then your balance may get worse, not better.

BaHaaFxTr
2012-09-20, 07:06 AM
I read many thread about hedging but am still cant get the biggest picture of it so any one has an artical explain the hedge from A to z please share it with me cause i really want to get it correctly and start to test it on my account i will be thank-full to you best wishes ;)

abbey ak
2012-09-20, 07:29 AM
well i heard of the Hedge but i don't really know the very best way to make use of the Hedge i just hope i can get an expect to put me through the very best way to make use of the Hedge just for my better understanding and a very clear picture will be very much welcome because that will go a very long way

dmambi
2012-09-20, 07:40 AM
Hedging is a way of protecting against the price raise or fall of a commodity , currency pair. I heard that it is widely used by big business houses. In Forex trading also many people use it, instead of stop loss to protect there account and avoid loss under opposite move of the market. Still it is not popular among the traders as is not easy as it looks.

sinaga
2012-09-20, 08:14 AM
protect the position of the trade, I think this is not the best friend. we will not wait long to hold trading positions opposite prices. hedging capital intensive and can calculate with good management. I myself prefer to use stop losses. risk of loss is menjdi part of the trade, so why should we hold back.

kellysmith
2012-09-20, 11:23 AM
Hedging is not so easy and simple. Can any body here give me any source from where i can get its deep knowledge ?

shankar_saha
2012-10-06, 11:18 AM
I Assume that the hedge may be a approach of mercantilism is relied upon to urge out of deals, all-time low charge practicable loss which needs that the merchandiser has brimful professional technical analysis as a result of the safety methodology is real dodgy and typically you'll not criterion transactions

junaid.1
2012-10-06, 11:21 AM
ye technique tab use karty hain jab markit ki situation clear nai hoti to hum jitni lots buy ki lty hain utni cell ki to hisab brabar ho jata hai

lovingfx11
2012-10-06, 12:09 PM
How Does Hedging Work For Foreign Exchange: This being an automated trade program it does just that or trades automatically without your intervention or input required. Well it's actually quite a simple process.

muna1982
2012-10-06, 01:00 PM
hello my friend, I advise you not to use the Heage, because he is dangerous, and you can lose all your capital in a single opposition, I told you that I lived through this experience.

goooood luck and happy trading ;)

hedging is not a permanent solution but fixing the floating loss or making the danger prolonged. when some one hedge to protect his continuous loss then when market direction change the opened position will give loss again. so it is better to replenish our account or giving some loss by manually so that rate of loss per pips will reduce. i think if we can survive in this crisis moment then we will get big reward when price is change back. the history says price always reverse back to the previous one.

hurryabrar
2012-10-10, 03:58 PM
yes like any trading action there's the pros and cons no agitation about that but maybe its aloof me but back am in agnosticism hi donot alike put two trades in the adverse administration i aloof let the bazaar break for me which barter i should but . its abundant safer that way

duaa khan
2012-10-10, 04:55 PM
hedg is highly dangrouse for a trader . when we hedg one trade and wait for trend to change so we can opn our hedg can close one trade buy or sel if we close our buy and trend may not change accrding to our anylise and pric countniusely up it will burn our acount so always avoide to hedg try to use stop loss and make stamena to book loss . it will give u courage for next trader but hedg make u confuse and up set

symoon24
2012-10-10, 07:42 PM
When to open trade sell and buy that time is called hedging. Few traders use this strategy when they do not set stop losses and faces big loss to prevent their losses they open trade in opposition side...But sometimes its hard to close this hedging...

aptx4869
2012-10-12, 07:50 AM
I am new trader, i do not know about hedge, What i know is hedge is something like protect value. It was open an order on one currencies and then we open other transaction on different pair. In example if we are open buy on EUR USD then we can try to open Sell On GBP USD. That was to protect our first transaction. I do not know how the application on real trade. Because i never use this strategy.

hanabare
2012-10-12, 08:40 AM
hedg is highly dangrouse for a trader . when we hedg one trade and wait for trend to change so we can opn our hedg can close one trade buy or sel if we close our buy and trend may not change accrding to our anylise and pric countniusely up it will burn our acount so always avoide to hedg try to use stop loss and make stamena to book loss . it will give u courage for next trader but hedg make u confuse and up set

Exactly the protect is to available two diverse positions inside the same twos buy and sell opportunities. i think one of the most of
the specialist trader utilize this technique instead of the stoploss due to the fact its also safe compared to the stoploss.

mkape
2012-10-12, 09:43 AM
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

We need good experience in any strategy no matter their risk levels,every strategy has its risks but when we follow the rules then we are good by them,all traders have their own styles and if yours is hedging then thats whee you belong

ladoali
2012-10-12, 01:27 PM
Hedging bhat useful technique ha heding sa same a/c ma same point per buy ya sell ki jati ha
heding sa profit or loss ko lock kar lea jata ha jis sa heavy nuqsan sa bacha ja sakta ha.

himelbf
2012-10-12, 03:12 PM
I would say that a protect is basically starting two roles in reverse guidelines with the wish of creating money from both place. However the source is also used by investors to secure bad deals such that the reduction is ceased until they get to a factor where they know that the cost will reverse, and then they discover the protect.

moshiur
2012-10-12, 03:21 PM
Hedging is frequently regarded a sophisticated investment method, nevertheless the rules regarding hedging are usually fairly easy. With all the reputation : and also enclosed complaint : regarding hedge resources, the particular training regarding hedging is now a lot more popular. Not surprisingly, it really is nonetheless not necessarily extensively comprehended.

Fibonacci Gartley
2012-10-12, 03:57 PM
i think 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
U must have great and clear strategic system before using this strategic

yudijoni
2012-10-12, 04:28 PM
i think 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
U must have great and clear strategic system before using this strategic
Yes bro., Gartkey I really do agree with your statement. I have already trying such hedging style strategy, maybe for a short time our equity will raise up. But for the long period of time, once our OP will be minus very very huge when the market trending.

hmidaanas
2012-10-12, 07:54 PM
if you want to implement this system because we are going against the grain of our first entry, it is true we can minimize these risks .

mithunsarkar
2012-10-13, 01:04 AM
You give cash in journal math pro the reporting provide by an assurance companionship. Though the course book explanation of prevarication is an asset in use out to bound the danger of one more speculation, indemnity is an instance of a real-world hedge.

3etman
2012-10-13, 02:48 AM
Hedging is great only in huge funds amounts , and have to be capped with a good money management consultants and a broker that is supporting the hedge operations
in the new meta trader 5 version , hedging is prohibited as the NFA rules started to prohibit it due to an internal code to make them more capable in managing the market operations for the sake of some organizations, which is against the sake of small investors sometimes.

josimuddin
2012-10-13, 02:50 AM
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.

malik
2012-10-13, 02:53 AM
Jab aap ki position loss main chalee jay aur aap nau stop loss na apply kia hoowa ho to opposite side main same lot szie kay saath trade lagany say aap ka loss lock ho jata hay au ris ko hedging kahty hain, lakin ye bohot hi risky form hay trading ki.

rebate lover
2012-10-13, 11:11 AM
I would say that a hedge is simply opening two positions in opposite directions with the hope of making profits from both position. However the resource is also used by traders to lock bad trades such that the loss is stopped until they get to a point where they know that the price will reverse, and then they unlock the hedge.