What is a Hedge?

[smamanbd]

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

[mmja2003]

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.

[md satu]

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

[abdul hamid p]

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

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

[julianambas]

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

[sitiz]

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 ?

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

[waleedkhan]

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.

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

[andhwrey]

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.

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

[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.

[moonletter]

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.