Hedging strategy

Discussion in 'General Forex Discussion' started by Ovidio Lettiere, Jan 19, 2021.

  1. Ovidio Lettiere

    Ovidio Lettiere ECZ Member

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    In hedging, traders buy and sell an asset simultaneously. It is a kind of risk management strategy. However, not all broker allows this kind of trading strategy. So, broker carefully if you want to use this kind of strategy. The demo account is the best way to test any kind of trading strategy which broker allow or not. Luckily my broker Eurotrader allow all kind of trading strategy in the market.
     
  2. Amy Lempriere

    Amy Lempriere ECZ Member

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    Money management and risk management are very important in every trading strategy. Because if you can't manage the risk, it is never possible to go ahead trading. Risk exists in every trade but it is essential to manage this risk. If you have patience and can apply trading strategy with proper knowledge, it is possible to get many rewards from trading.
     
  3. PinkSugar

    PinkSugar ECZ Member

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    Hedging with forex is a strategy used to protect one's position in a currency pair from an adverse move. It is typically a form of short-term protection when a trader is concerned about news or an event triggering volatility in currency markets. There are two related strategies when talking about hedging forex pairs in this way. One is to place a hedge by taking the opposite position in the same currency pair, and the second approach is to buy forex options.