What is a Hedge?

[sonijuyi]

hedge is a strategy that we do when the price moves in the opposite, in order to lock the stable balance position in the middle of that price movements can not be predicted. then we will release one position when we know the price is our next move according to the analysis. but this is very difficult for those who are not able to analyze the market properly

[abdurl raziq]

When a currency trader enters into a trade with the intent of protecting an existing or anticipated position from an unwanted move in the foreign currency exchange rates, they can be said to have entered into a forex hedge. By utilizing a forex hedge properly, a trader that is long a foreign currency pair, can protect themselves from downside risk; while the trader that is short a foreign currency pair, can protect against upside risk.

[ashraf500]

i think that the hedge is considered such as a way to close the incremental loss of money through make an opposite order with the same volume to keep the remaining money on hand and can invest them in other currencies

[somakon]

I have come across some cases when traders say that they would rather prefer to use the hedging system than to use stop loss level, but as for me the opposite is true, I would rather prefer to use stop loss for my trades than to use hedging system.

[rozikhan]

hedging is a strategy for entering the market with 2 opposite order with the same lot, and it was done due to analyze market or to hold losses, so I think that hedging is better for me than the stop loss.

[firesolutionz]

Hedging double-edged sword, O my friend, it is of the profits achieved by increasing the proportion of risk in the cloud every time multiplied by the lute to enter the deal, so you might use capital management firm with trading the best way of hedging.We will need a superior calculation for applying this device properly.

[elprince]

it truly is merely operate the chances to create benefit from hedging, if you are purposefully employ hedging to create revenue after that commonly you must begin to see the time primary before you decide to fit a couple of unique placement immediately. yet if you are using hedging since unexpected emergency leave then you definately really should check out your data continously, so that you will not likely neglect any kind of chance.

[buran]

This method is used for reduction or avoiding the loss when a trader enters a trade and finds that the price goes against his trade.That time he opens opposite trade and waits for a trade to make profit.But this is not a better solution of trade.A trader uses hedge when he doesn't understand the market condition clearly,but I think that time a trader should avoid trading.

[naija]

Hedging is usually an act which tends to control losses when a trader has not used stop loss in trading and the losses are hitting hard on their trading. So the hedging becomes a wage which reduce the impacts of the losses because both positions just move in the opposite direction.

[Levi]

hedging ek strategy hain jis ko trader us waqt use karte hain jab wo loos main ja rahe hote hain main na hedging ka barye main sirf study kayea hain but abi tak main na hedging kar ka nahi dekhi hain

hedging is not good trading style for me because hedging is inconsistent strategy, you buy and sell at the same time. for me hedging is very ridicolous and you will not get consistent profit by using hedging, but hedging useful for minimize your loss in trade.