What is a Hedge?

[mariomuhafsa]

The traders knows how to hedgeq better than others and i can say that many traders are also lossing a s a results of the hedging also, this is a real thing of concerns for the traders that cant settles dealing at ones(Stoploss) !!

[yasiraziz]

Hedging ak forex satrategy hai jo k buhat useful hai is sy ap buhat bary loss sy bach jate hain
aur ap ka jo profit hota hai usy b lock karta hai ye buhat sy trader use karta hai loss sy bachne k liye

[rana157]

hedge main ne kabi ni kia.wese itna pta ha ke agr ap aik he volum pe sail ya buy ke trade lagate han
to ap agr is ko hedge karte han to phr ap ko jo loss ha wo lock kar deta ha thore profit main.mere to yahi advise ha ke hedge ni karna chahye.

[sgiant]

This method is best used to minimize losses. However, using this method must have a large capital, and holding floating long enough.

[forexstudentforever1]

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.

Hello Everyone, the main reason that you want to use hedging on your trades is to limit risk. Hedging can be a bigger part of your trading plan if done carefully. It should only be used by experienced traders that understand market swings and timing. Playing with hedging without adequate trading experience could be a disaster for your account.Thanks.

[vbalan]

with hedging, then any position that you're open, will benefit. Generally one can do is hedging traders with large capital. That's why there is an organization called "Hedge Fund". -A financial organization that was formed with the aim of collecting funds from large investors to use the investment in the forex market.

[antosco]

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.

[uttkal]

Mai aap ke bat se shamat hu par isko mange kaise karte hai. Yadi mai 1 ka lot buy karat hu aur is trade me muzko loss dikhta hai to mai kitne ka lot sell karuga. kya 1 ka lot ya usse jyada ka. Yadi 1 ka lot sell karta hu to buy ka loss jyada hota hai. Kay aap muzko brief me explain karoge.

Hedging ek aisa tarika hai jisme ek trader kisi ek pair ko buy bhi kar leta hai aur sell bhi kar leta hai
aisa karne se wo apni equity bachata hai jisse ki uska account margin call tak nahi jata..aur aisa tab bhi karte hai jab traers ko lagta hai ki ab trend change ho gaya hai aur wo apni deal ko loss me nahi kaat ne dena chahte to wo us deal ka loss dusri taraf deal khol ke barabar kar lete hai..bahut se trader hedging use karte hai lekin naye tradres isme uljah jate hai

[kltbanptbnyab]

The hedge is to open two differents positions in the sames pairs buy and sell positions !! i think the most of the experts trader suse this techniques in the places of the stoploss because its too safes than the stoploss really !!!

[dalaxapola]

The hedges is the away to saves yours money if you think that you will faces the call margins or you think you will loses it as soon as so you makes it and you can makes it by open two trades one buy and one sell with the same lot so the two trades opposites the directions and the stop the decrease of money but this method hardly to exit from it and before do it learn how to exit its !!