What is a Hedge?

[ahmdadafa]

I believe that with propers risk to reward ratios hedging can be profitables in the trending markets, But in ranging markets you can faces horribles losses in yours trading and there are somes people who hedge differently really !!

[mariomuhafsa]

The Hedge is weapon we can use it to make very good profit or it lead us to kill our balance couscous it need peoples who have very good experiences in this business really !

[deepak]

hedging is very powerful yet sensitive strategy.if a trader without knowledge will hedge he can loss all of his capital anytime but professionals knows how to make good profit from it.it basically works like opening opposite positions at the same time and wait for the right time to close one side and make profit from the opened one.it is a good strategy if you are receiving rebates but it requires very high discipline.you have to prefer to close your losing positions first not the winning one.and it is very hard to do it for most of the traders.

---------- Post added 07-17-2012 at 01:07 PM ---------- Previous post was 07-16-2012 at 11:08 PM ----------

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.

[cozard007]

Really hedging is very good, the fact that some brokers rejects and forbids it makes me skeptical about this kind of trading startegy as not to affect my withdrawals...

[Dragon]

Yes, alright, i can say that hedging is not so easy and simple. it is a trading technique that is very good for trader. especially for beginner. It can help us avoid a very big loss and also lock our little profit.
Thank you very much

[lap]

For each order we open for buy we open an order for sell - in this way our losses do not grow as if one trade get into losses another goes in profit, this is a safer way to trade volatility.

[halwaniptba]

The hedging is one of the strategy to limits losses, by opening an opposites directions with the originals positions wich already loss, so the floating minus can be stopped really !!

[aminos]

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.

[joget]

hedging is to open two or more trading positions in the opposite direction with each other in the same time and in one currency pair. In my experience, you should avoid this strategy, because it will hamper your mind mentally to continue to follow the market movement.

[kamot]

This Parry is a trading strategy whereby an investor seeks to concentrate the seek of an unfavourable cost change on a certificate, artefact or currency that he owns in one marketplace by winning a lieu or combination of positions in different markets. This "protection" pattern began when public futures markets were entrenched in the dead 1800s to provide for efficacious price endorsement in the farming commodity markets. The venture mitigating writ has expanded over the geezerhood to let futures contracts for security currencies, wanted metals, push, and welfare rates. Although futures contracts are the most favourite occupation for protection strategies, otherwise vehicles typically used are forwards, swaps, options, protection policies, and more type .