To use chat, please login.
Back to contacts
ele020 (ele020)
Sep 15 2020 at 05:58
211 posts
Mohammadi posted:
The purpose of this thread hedging is useful or not. In order to me, hedging is an investment to reduce the risk of adverse price movements. Practically hedging brings no profit because of your intention. When I open a trade, I always try to support my trade even the trend is going against me. So better to close the trade and open a new one when it seems to be in right trend.


To be honest I never understood the concept of hedging and how it works well for any trader. As per the concept, you place buy and sell order simultaneously on the same instrument with same lot size. You earn when one of your trades start going into profit. But the other one is surely going in losses. Yes, you surely earn from the difference from the magnitude of either direction, but their are spreads as well. So how does it actually work for a retail trader? I never understood this.

Its such a vague strategy for me as per my past experience.

The more your practice, the more you learn.
caringloriana
Sep 25 2020 at 11:25
26 posts
For anyone who knows the concept of hedging, it works and for those who don't have an idea about it, you need to learn hedging.

Markwoods
Oct 12 2020 at 09:27
26 posts
Hedging is a useful strategy for any trader and they must be aware of it. It is a management strategy used by investors to reduce the possibility of risk. The reduction of risk can also affect the profits. Derivatives are used in Hedging.

eastcoastawoke
Oct 12 2020 at 09:45
7 posts
What exactly is a hedging strategy? Is this using options?

lauranutt
Oct 13 2020 at 05:37
36 posts
Hedging is so important for protection in stocks, lowers the risk to quite an extent.

EbonyJones
Oct 18 2020 at 21:39
232 posts
Hedging is not so easy. You need to learn properly before using it. Otherwise, you can face a great loss in this market.

LyudmilLukanov
Oct 26 2020 at 12:33
461 posts
lauranutt posted:
Hedging is so important for protection in stocks, lowers the risk to quite an extent.

Not all broker supports this kind of strategy. So, be aware of that.

AliaDare
Oct 27 2020 at 00:19
515 posts
Hedging is harmful. Hedging the trader can lead to many problems. So stay away from hedging.

Please login to comment .