So I was watching Million Dollar Traders and they're talking about "hedging" their exposure. One example was the guy bought one bank and shorted another bank, to offset his exposure. Alright, so 3 possible things can happen: 1. Both banks move roughly together and his net P/L is 0 (the same as not taking the position in the first place) 2. The bank he is short goes down and the bank he is long goes up = double profit 3. The bank he is short goes up and the bank he is long goes down = double loss How is that an advantageous strategy?