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TRADING WITH HEDGING

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Hedging is a trading strategy to "limit" or "protect" trader funds from fluctuations in unfavorable currency exchange rates. Hedging provides an opportunity for traders to protect themselves from possible losses even though he is conducting a transaction. The trick is to minimize the risk of loss when currency exchange rate movements do not allow traders to profit.
Usually, the position of a losing trader will be closed automatically when the price reaches the Stop Loss level or a Margin Call occurs, or if the trader does his own Cut Loss. In all three scenarios, the trader will surely incur losses that are not small. However, if the market participant uses a Hedging strategy, it is possible to minimize the amount of the loss, or even be able to break even. Not only that. Hedging can also help market participants in planning the next trading position.
Hedging is primarily intended to limit the risk of trading on the financial market. However, many forex traders use it as a daily trading strategy. This is because forex trades pairs of currencies, so that the decline or strengthening of the exchange rate of a currency is always related to the decline or strengthening of the exchange rates of other currencies.


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#1 - July 28, 2019, 10:24:56 PM
« Last Edit: July 28, 2019, 11:47:06 PM by Admin »

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Hedging strategies cannot be used arbitrarily, in certain conditions it can indeed use hedging but under normal conditions or other conditions hedging will be dangerous because many say that hedging is a double-edged knife.
#2 - July 29, 2019, 12:25:05 AM

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trading with a hedging strategy is very dangerous, don't do it if you don't have experience.
#3 - July 29, 2019, 04:23:24 AM

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I do not like the hedging technique because it often makes me confused which one to close
#4 - July 29, 2019, 06:16:05 AM

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Hedging is very dangerous because it requires a large margin and experience using it.
#5 - July 29, 2019, 03:03:13 PM

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Hedging is a very dangerous strategy so don't ever use hedging unless it's very necessary.
#6 - July 29, 2019, 11:35:34 PM

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Hedging is very high risk especially for traders who are not experienced in the field of hedging.
#7 - July 29, 2019, 11:48:33 PM

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Hedging strategies really need a big margin, that's what makes this strategy risky.
#8 - July 31, 2019, 03:44:23 AM

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I agree with the opinion of friends that trading with a hedging strategy is dangerous if it is not well-controlled.
#9 - July 31, 2019, 03:54:13 AM

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Hedging is a strategy by utilizing the opposite transaction to make a profit.
#10 - July 31, 2019, 12:15:54 PM

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Trading with a hedging strategy is very difficult to do if the trader does not have experience in hedging.
#11 - August 02, 2019, 04:20:42 PM

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in my opinion hedging is very risky even though it is done by pro traders, so it must be accompanied by a wise MM.
#12 - August 02, 2019, 04:30:56 PM

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Trading with the hedging method is known to be very risky but we must have experience if you want to be safe.
#13 - August 02, 2019, 05:04:02 PM

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hedding is sometimes very helpful in overcoming floating minus but on the other hand the strategy is risky.
#14 - August 02, 2019, 09:15:35 PM

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this strategy requires capital and a large margin so don't do this strategy when the ballance is inadequate.
#15 - August 02, 2019, 09:23:17 PM

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