What is a Hedge?

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

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.

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.

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 !!

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 !!

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Originally Posted by alamayreh

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.

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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.

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

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 !!

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.

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Originally Posted by antosco

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.

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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