Hedging, yes or no?

haven't engaged in hedging before, and I'm interested in knowing if there are any risks I should be aware of before starting?

 

Yes, you can lose money. If you want a more specific answer, add some specifics to your question.

 

What are you trying to hedge? can you be specific please? Options are used for hedging ( both on Equity and on Futures) also one can hedge a Futures position with another by converting it in to calendar spread but skill is when how and why!

 

She's not asking you guys a question that she wants answered. She just wants you to discuss the topic amongst yourselves.

 

Op is not a she. It’s a bot.

 

A dumb bot that wasn't coded to understand hedging is done to try to .... reduce risk.

 

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Sure .
Its used in 2 main ways, finance ;
1] Stocks[ETFs........ benchmarks like SPY.....] are a hedge against inflation
2] An offset, like an inverse or short against long position, but could lose on both.
777] Selling plan works well, take profits , let profits run+ cut losses.
Some times can work well , but countertrends+ trends differ so much;
countertrends can have unlimited losses , cash longs could only lose 100%\ worst case
888] I never hedge in my cash metals business but do sometimes in ETFs.

 

Can have its uses given the right context.

 

nothing rather than that you should consider hedge trade also includes a spread, do not forget to take that into your consideration.

 

Bot answering bot.