What is a Hedge?

[riya]

In my way of trading i never liked hedging if i fudge . then it SHOULD be the only alternative acquirable to me and no opposite choice can be victimised . i believe it shows that we arent trusty around the market and happening and we are guessing of the direction and this can be harmful !

[manibhai2012]

According to my knowledge of the Forex market Hedge is the formula to hack the market I think that buy and sell from the same place is known as the hedge it is applicable when the trader fails to find the trend of the Forex market.

[yaqoobali95]

hedge is a trading stratigy by which an investor seeks to reduse the risk of an adverse price movement on a security. making an investment to reduce the risk of adverse price movement in an asset.

[rathod]

i prefer to use hedging then i have to put stop loss at my trading and with it i have chance to convert my losing to profit , but not simple like that, we have to have good ability for it and so before do that then we have to learn and practice how to control and use this system with good
and of course need good mental, discipline and patience for it

[deep]

I would say that a hedge is simply opening two positions in opposite directions with the hope of making profits from both position. However the resource is also used by traders to lock bad trades such that the loss is stopped until they get to a point where they know that the price will reverse, and then they unlock the hedge.

[wahabplus]

Hedging is a strategy commonly used by forex traders for reduction of the risk of increase in loss due to adverse movement of currency. Normally traders use hedging strategy when they are not sure about the direction of movement of currency. It is the most important part of risk management. It is well known ways to offset the costs the investor buys a call option and a put option to sell out. Trader can limit the loss with it but they can't decrease the loss by using only hedging strategy and they may decrease the loss to minimum or zero or turn it to profit by using their knowledge and skills.

[aamu]

This will only come true if you hedge well, with small targets like 20 pips targets and in a ranging market. If you hedge in a trending market, then only one position will benefit until you unlock the hedge at a point of reversal.

[najaf12345]

hi
hedging is the very confused strategy. trader took buy and sell on same price or in different pairs. and close the trade when they see market will
come back from that price. its very confusing strategy for new one .

[hitesh]

be careful if you want to implement this system because we are going against the grain of our first entry, it is true we can minimize these risks. but do not get too far
to suppress

[hitesh]

automatically works that way, if we just left behind the same point in going down it is why keep using headge, 2 positions to lock in profits even if we lose the meal was spread versus entry position,be among the last true entry in the account