I'm not sure I 100% understand how hedging works / the mechanics. Doesn't it just make everything break even? Without getting into options or other derivatives, just talking stocks.. How should I hedge a position? Right now I am long an electronics company.. I am also long an ETF that is the inverse of the market index. So... the market goes down, my inverse market index ETF is going up.. So I'm making money there... Of course, my electronics company is losing me money.. Overall, it's more or less a wash / break even.. So, how is this supposed to work? Why is hedging a good idea and not just a way to end up break even all the time? What is the general-case timing for exiting the position and the hedge to make this work properly?