What is a Hedge?

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..

Quote:

---

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.

---

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

Quote:

---

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.

---

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.

Quote:

---

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.

---

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,

Quote:

---

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 ;)

---

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

Quote:

---

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

---

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