Hedging

Nov 14, 2014 at 12:10
Vistas 614
11 Replies
Miembro desde Aug 04, 2011   posts 8
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. ~~
Miembro desde Mar 17, 2021   posts 536
Jun 25, 2021 at 06:48
Hedging is very risky. You need to have proper knowledge about it before using it.
Miembro desde Aug 10, 2009   posts 5
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
Miembro desde Dec 28, 2020   posts 187
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.
Miembro desde Jul 23, 2020   posts 869
Jul 05, 2021 at 12:34

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

Miembro desde Jul 23, 2020   posts 759
Jul 10, 2021 at 02:26
Hedging is a risk management strategy. But some use it for making a profit.
Miembro desde Aug 20, 2020   posts 27
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?
Miembro desde Oct 16, 2020   posts 137
Jul 20, 2021 at 06:12
Miembro desde Jun 17, 2021   posts 46
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.
Miembro desde Jul 23, 2020   posts 759
Aug 05, 2021 at 16:05
It is a risky strategy and many brokers don’t allow it.
Miembro desde Mar 17, 2021   posts 536
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.
Miembro desde Jul 27, 2020   posts 81
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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