Hedging & SL.

[seri]

For me first tool is SL and seconed one is hedging, If i did not have abetter exit strategy than i use hedgoing and first prority is sl because if stop hits it means that i plan all in wrong and at that moment i did not go for hedging.

I prefer to choose one of them and the tendency is using SL than hedging. There is additional risk when I used hedging
strategy but I don't unlock position in the right time. So I prefer to use SL and when SL is hitted then I will find out another
chance to gain profits.

[norix]

for me its best to hedge only and only if your margin and money management rules allow it . otherwise you might get a margin call if you hedge and donot have the require margin ! so its nice to use stoploss because it protect account and you can trade another day when conditions are right !

use of stop losses on hedging? I think the key as if we get lucky, we immediately locked it because it can make a profit
but if you want to hold and cut the losses we may use SL as soon covered our losses
and we can continue trading the other day that the new civil right

[ermaniso2011]

when the market is in side way it is better to use hedging since we can make profit from both sides.but hedging will be useless when the market will make a sharp move.you will have to watch the market very close and only wait for the market to clear the direction then quit from the loosing trades and just pray if the trend will continue to your favor.l think stop loose is still the best way.

[Techno]

Hedging means opening of two different positions in the same pair to lock your loss. Suppose you have open a buy position in a currency pair and your loss is continuously increasing then to save your account you can open a sell position in the same pair so that your loss does not decrease more then it is called hedging.

to hedge, we need to know when it is appropriate to remove the hedge.
because if we do not exactly in the open hedge, then it can cause loss larger than the previous minus.
so this way is not recommended for novices.

[seri]

Hedging is not easy to deal with for every one and its not only you who faced loss from hedging, it pushes in further losses so batter to use the stop loss to minimize or cut the loses.

Yes, hedging is not easy to do because you must make good prediction about what will happen in the future so you will prepare
to lock and unlock position later. It's not my style to use hedging, it's confusing me and it's wasting too much time for me. I prefer
to close position and find out another good position to open.

[yogesh]

I tried hedging and did not find it working for me even if i close one postion in profit other is in equal or little bigger loss due to spread effect. And so i feel SL is more effective - simply book little loss when market gone against expectation other wise enjoy rising profit.

[narendra]

Hedging means opening of two different positions in the same pair to lock your loss. Suppose you have open a buy position in a currency pair and your loss is continuously increasing then to save your account you can open a sell position in the same pair so that your loss does not decrease more then it is called hedging.

[vineet]

i am not agree with you i think that we can take the hedge as a stop loss but the stop loss we can take it like hedge ..well igues that the hedge is more useful than the stop loss because they give us an other chance to win

[joko]

I am totally agree with you about SL because its only save us our account . its true sometime after hitting sl price come back previous place but its also true price never come back again that position for long time and it may destory our account easily . so i always agree to use SL in our trade all the time.

It was right if stop loss could limit our loss so it can save our account from Margin Call. It is possible to use hedging
to limit your losses but you must know when is time to lock and unlock position to reduce the losses. It's harder to use
hedging strategy because you must have good prediction about what will happen in the future to predict unlock position
in what price.

[dragon]

i am fully agree with you because hedging is almost critical for newbie and when it go big loss then its really will not good for them but if use SL and TP then its better because we are taking particular amount for risk but when our experience level grow then we can use hedging or cut loss but before that its really risky .

That's right. Hedging is very risky for newbie so if you want to use the strategy, I suggested to learn it in demo account first so
you will know the effectiveness of this strategy and also you could know the risk of the strategy. It is easier to use Stop Loss
in trading than hedging.