What is a Hedge?

[oreoluwa]

well i also read a lot of books regarding the Hedge but i still find it very hard to understand because i can not get the main different between the Hedge and the stop lose so i will so much like to earn from the ex-pact the main different between the Hedge and the stop lose

[kaisar]

hedging techniques often applied when we experience floating very much and our capital barely contain it. or in other words the loss margin. to secure the funding we were almost done hedging MC then the open positions in the opposite diorder the previous order. but the problem is that we will feel hard to get out of this hedging technique. we can only go out when the price has reached a saturation point. but if you have not tried you should use a demo account first and understand the good and bad hedging techniques for your style of trading

[Gaurav Singh]

Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.

[ramix]

Hedging strategy by utilizing the correlation between the pair. You can prevent large floating minus, with a trend-following trading. I was also trading with the trend, so it is very important to analyze trends, traders have the discipline to rule trading system.

[saqib160]

hedging karne ka laye hum ko hadging ka brye puri tarh pata hona chayea tab he hum hedging
kar sakte ha. hedging ma pair ko buy be kayea jayta ha aur sell be kayea jayta ha jis ke waja sa
humera mergin call barkar rahta ha aur loos ma jane ka chance bohat kam hote ha new trader
ko hedigng nahi karni chayea kyon ka us ko market ka barye ma itna kowldge nahi hota jis ki waja
sa wo loos ma ja skata ha.

[sayidatul]

yes it is a trading strategy and in this straegy we can easily understand the loss and we can reduce it butt here is need to use this with proper think and i think we can be able to got much profit if we were easily understandthis

[humayon]

i think, 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.

[nana12]

what is hedge hedging ke liye poori tarah technical studies hana bahut zaruri hota hai yahi ek reason hai jis wajah se naye traders ko hedging ki permission good

[bablakhan]

Hedge :
Making an investment to reduce the risk of adverse price movements in an asset.Normally,
a hedge consists of taking an offsetting position in a related security, such as a futures contract.
An example of a hedge would be if you owned a stock, then sold a futures contract stating that you will sell
your stock at a set price, therefore avoiding market fluctuations.
Investors use this strategy when they are unsure of what the market will do.
A perfect hedge reduces your risk to nothing
For the most part, hedge funds (unlike mutual funds) are unregulated because they cater to sophisticated investors.
In the U.S., laws require that the majority of investors in the fund be accredited.
That is, they must earn a minimum amount of money annually and have a net worth of more than $1 million,
along with a significant amount of investment knowledge. You can think of hedge funds as mutual funds for the super rich.
They are similar to mutual funds in that investments are pooled and professionally managed,
but differ in that the fund has far more flexibility in its investment strategies.
It is important to note that hedging is actually the practice of attempting to reduce risk,
but the goal of most hedge funds is to maximize return on investment. The name is mostly historical,
as the first hedge funds tried to hedge against the downside risk of a bear market by shorting the market
(mutual funds generally can't enter into short positions as one of their primary goals).
Nowadays, hedge funds use dozens of different strategies, so it isn't accurate to say that hedge funds just "hedge risk".
In fact, because hedge fund managers make speculative investments, these funds can carry more risk than the overall market.

[har2]

Hedging typically is really beneficial trading technique . It prevent us from a very big reduction and lock the little profit . Hedging is certainly not easy and additionally simple . We will need a superior calculation for applying this device properly .