Discussion in 'Forex' started by yana hansen, Oct 23, 2020.
Somebody please explain me hedging.
maybe you should first learn to google simple questions
Simply put, hedging is an investment risk reduction method. It involves taking an off-setting in a related security. You can read online for more information.
If you want to know what is hedging go to:
Hedging can stay on 100% thru 1% of the time, can use it to open positions of buying a stock and buy puts as insurance, or if you can time market extremes, put in hedges to secure open profits. You can use options or similar product like futures to hedge stocks then use options to hedge the hedge.
Hedges for me reduce risk while expand rewards. For me much study and ongoing.
I view it as trading maximum potential reward for reduced risk or higher probability of achieving profit.
If we open a trade of buy & sell on the same limit. We can close the trade according to the profit and loss irrespective of the order we opened them.
I kind of disagree with this.
I think trading for a retail trader is about maximizing dollar profit. Your risk and your base capital are constraints.
There’s no honor in earning 2percent a year with a sharp of 10.
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