What is a Hedge?

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Originally Posted by patil

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.

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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

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.

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

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?

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

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.

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 .

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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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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

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.

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.

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.

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

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.

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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Originally Posted by johntra

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.

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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.

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

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

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

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.

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.

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

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..

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Originally Posted by elektra

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.

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

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

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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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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.

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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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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,

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Originally Posted by insta trader

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 ;)

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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

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Originally Posted by ayusri

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

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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

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.

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

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:

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.

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Originally Posted by iwan

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.

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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

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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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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

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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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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

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

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Originally Posted by forex_player

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

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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

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

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.

Hedge is an important thing about Forex trading.
It is is a trading strategy by which an investor seeks to reduce the risk.