Hedging

Nov 14, 2014 at 12:10
622 Angesehen
11 Replies
Mitglied seit Aug 04, 2011   8 Posts
Nov 14, 2014 at 12:10
I have been searching forums, and have found a lot of "You should use hedging to protect against changes in interest rates" posts. However, I haven't been able to find anything related to HOW to hedge. Is anybody aware of any hedging techniques?

The only one I can think of is to find a highly correlated pair and opening a position. If price movement moves against you, the correlated pair should move in your favor, reducing your loss.

Thoughts?
The Trend is your Friend. ~~
Mitglied seit Mar 17, 2021   536 Posts
Jun 25, 2021 at 06:48
Hedging is very risky. You need to have proper knowledge about it before using it.
Mitglied seit Aug 10, 2009   5 Posts
Jun 25, 2021 at 09:19
heding is used by EAs on multipls of small strategies or as an outright strategy itself - but as a repair strategy for alosing trade - it doesnt help
Mitglied seit Dec 28, 2020   187 Posts
Jun 29, 2021 at 07:46
lostfox posted:
I have been searching forums, and have found a lot of "You should use hedging to protect against changes in interest rates" posts. However, I haven't been able to find anything related to HOW to hedge. Is anybody aware of any hedging techniques?

The only one I can think of is to find a highly correlated pair and opening a position. If price movement moves against you, the correlated pair should move in your favor, reducing your loss.

Thoughts?
Sorry but I do not understand your question about how hedging helps to protect against changes in interest rates & quotes. Can you please explain it more.
Mitglied seit Jul 23, 2020   869 Posts
Jul 05, 2021 at 12:34

Hedging Is a risk management strategy. It is good in my opinion.

Mitglied seit Jul 23, 2020   759 Posts
Jul 10, 2021 at 02:26
Hedging is a risk management strategy. But some use it for making a profit.
Mitglied seit Aug 20, 2020   27 Posts
Jul 13, 2021 at 13:11
Why is hedging considered difficult than scalping, and what is the risk ratio between hedging and other trading methods like scalping or day trading?
Mitglied seit Oct 16, 2020   137 Posts
Jul 20, 2021 at 06:12
Mitglied seit Jun 17, 2021   46 Posts
Jul 26, 2021 at 05:29
@ SteveHanks I agree with you that hedging can prove to be an extremely risky affair. Any trader planning to use the same should have a complete understanding otherwise can lead to a loss.
Mitglied seit Jul 23, 2020   759 Posts
Aug 05, 2021 at 16:05
It is a risky strategy and many brokers don’t allow it.
Mitglied seit Mar 17, 2021   536 Posts
Aug 06, 2021 at 09:17
karenpeters posted:
@ SteveHanks I agree with you that hedging can prove to be an extremely risky affair. Any trader planning to use the same should have a complete understanding otherwise can lead to a loss.
Yes. A good plan is very much needed to reduce the losses.
Mitglied seit Jul 27, 2020   81 Posts
Aug 07, 2021 at 06:32
Each strategy has certain risks, if you learn how to work, you can always achieve a good result
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