What is a Hedge?

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Originally Posted by antosco

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.

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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

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Originally Posted by prawinkurdeg

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 .

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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.

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)

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.

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.

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

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Originally Posted by atif58

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 ?

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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.
:)

hi friend do you know about a hedge it dangerous for trading please never come near it

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.

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