Thread: What is Forex Hedging?

Forex hedging is a very popular phenomena in forex trading. But majority of the people are not aware of it. When we trade in other currencies we encounter hedging problem. Lets start discussion on it so that those who are unaware about this phenomenon can benefit from this discussion

Hedging is a strategy where we can open a new open buy and sell orders (or to simultaneously) in the same currency without closing one position. This technique is used to lock a position that was having a floating minus.

Hedging is a trading strategy where we do buy and sell in the same currency pair. The function of hedging is to lock the position so the loss was not greater. Than hedging , I'm better choose scalping. in the short time I've get profit

Hedging is might be explained above is basically 2 trades opposite of each other, but that’s simple way of hedging, if you go into complicated mode then there are several ways to do it, but I generally keep myself away from hedging because it’s complicated.

In forex trading, hedging means we open two opposite positions so even though the price rises or falls the floating value remains the same.


Hedging is usually done when we open the position of losses. So that the losses do not get bigger, we key with this hedging technique.


So next Hedging is also known as Locking (locking) because when we use this hedging technique we locked the position that makes the value of profit and loss always move hand in hand.


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Hedging is a way for a company to minimize or eliminate foreign exchange risk. Two common hedges are forward contracts and options. A forward contract will lock in an exchange rate today at which the currency transaction will occur at the future date. As I like to hedge on market I have chosen Trade12 broker at last because with the broker I have the ‘’smart bridge technology’’ and lowest spread with fluent trading platform.

Hedging is a way to escape losses. Hedging is a strategy used to protect one’s position in a currency pair from an adverse move. With the platform of Eurotrader broker, you will face no technical glitches. They allow you to run portfolio hedging on their platform.

There are so many important things that traders have to learn and understand in forex. Therefore, I continue to engage in regular learning and training, so that I can understand better and trade forex to the fullest and be profitable.