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.
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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.
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.
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?Quote:
Originally Posted by chirayu
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.
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
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.Quote:
Originally Posted by Mark
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.
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.
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 farQuote:
Originally Posted by Mark
to suppress
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.