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Hedging is used to lock the deals in profit or in loss. But, it should be used by very experienced traders. Should know to break the hedge deals. Stop loss is used to cut loss which makes your fund safe. Both terms should very important and use in it in right time and in right points. Otherwise, results only in lose.
i dont agree with you that experienced trader not using hedging..hedging is used by experienced trader most of the time use it who play for long term trading.Quote:
Originally Posted by hardworks
when ever their trade going a lot of pips opposite to their trade then they use hedging..i also use hedging once when my account near to margin call and i save my account.
hedging or stop loss i'm choose stop loss in trading activities, its more effective to trading and get more safe and profit, with set stop loss we can more safe if news with big impact release, hedging is need a good best system to set a good system and set target profit or to cut position to safe position when using hedging system
stop loss order will help you keep your losses low, traders that do not use stop loss orders are usually concerned with their stop loss orders being visible in the market
i agree with you that stop loss save us from big loss...Quote:
Originally Posted by MIDO
with the help of stop loss we can save our account from margin call..but with the help of hedging we can made some pips or profit also when ever our trader move a big pips opposite from our trade.
you are right..
hedging is also one techanic for making good profit and its also help of avoid margin call.
but in hedging the exit & entry point must..be care about both. in my view hedging good if we have good capital in our account..for small investment stop loss is batter.
i think stoploss is best for reducing our losses but i dont know much about hedging.so i use only stoplosses to reduce my losses.so better to maintain stoplosses in trading inorder to reduce the losses
Hedging can be used to protect the profit we made when the market is in correction or reversal we do not sure. Sometimes the market has a deep correction, that is really an examination for trader, but if we use hedging, we can be in less pressure. But if the market just correct for a small way, hedging can bring loss also.
hedging is risk management is more complicated, I've tried to practice, I am often wrong in opening hedging analysis, and ended up getting a bigger loss, I think the more simple to use stop loss, I am more fit, if hit SL, there are many other opportunities to make the analysis
many people thinks that of we use hedging, it's just like freezing the balance forever. but they forget that if we hold too long in hedging position, some position can get swaps fee, and this is can reduce our balance bit by bit. Therefore, although hedging is same like stop loss, never use it longer than a day. try to close the hedging before the market closed.