What is a Hedge?

[zani]

My dear, for me I absolutelly do believe that hedging can be used to be able to protect us from larger losses completed from just about any position. Not suggested for novices in order to hedge as it typically is very hazardous also demands skill not to mention undertaking that would close the career with the help of benefits.

[sayinifx]

Hedge karne ke liye market me ek point par buy aur sell dono ek sath open karni hoti hai hedge Karna easy nahi hota hai trader ko trader ko such samjhkar exit karni hoti hai agar trader gailt exit kar dete hai to bahut loss ho sakta hai.

[mix]

of course my dear, I obviously believe that in any market dedgeing is very good strategy to loch your loss or profit in forex market .suppose that you have buy any instrument of two lots you not want sold but want lock your profit then you can sell same instrument then your profit is definite.

[sdcfesco]

Hedging is not a simple technique. it is very technical technique to apply this technique you have to be very careful. I think hedging can only be applied when you have no option to save your equity otherwise hedging can not be good for a trader every time.

[fxearner]

hedge me trader 2 trade open karta hai same price par,trader esko stop loss jo use nahi karte wo karna hedge pasand karte hai lekin esme trader ke liye bahut mushkil hota hai ki wo kaunse trade ko close karein..

[sarfraz786]

hedge is also trading strategy where the investor seeks to reduce the risk for trading this type of trading is done in agriculture trading in this trading traders are also trading and getting much money

[Salufx]

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.

[dareking]

Hedging trading mein ek taraf se buy aur ek taraf se sell ye dono ek sath mein kari jaati hai, lekin Hedging tradig karna koi easy nahi hota hai, kafi jayda mushkil trading hoti hai, exit galat kar diya gaya to loss double hote hai bhai.

[saadshah]

My dear friend, hadge aik aisa mufeed tareeqa hy jis sy hamin trading main kafi problems ko solve krny main madad milte hy is k madad trader trade ko sell bhe krta hy aur buy bhe kr skta hy mgr ye new members k lea kafi mushkil hy mn ny jb is ko first time use kia tha to ye mujh sy nahi hua mgr ab mujhy is main kafi experience hasil ho chukka hy thanx.

[Hamz1]

what a thread.. !! good job app k is post sey kafi members ko help ho sakhti hai bax un se guzarish hai k wo idheer in batoo pe focus kartey rahey is tarha wo kamiyabi ki taraf jaye gey jo k bhoot axhi baat ho gi un k liye. i wish them a very best f luck for their future just keep doing hard work here .