Sep 15 2020 at 05:58
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.
Sep 25 2020 at 11:25
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.
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.
Oct 12 2020 at 09:45
What exactly is a hedging strategy? Is this using options?
Hedging is so important for protection in stocks, lowers the risk to quite an extent.
Oct 18 2020 at 21:39
Hedging is not so easy. You need to learn properly before using it. Otherwise, you can face a great loss in this market.
Oct 26 2020 at 12:33
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.
Hedging is harmful. Hedging the trader can lead to many problems. So stay away from hedging.
For a new beginner to initiate with a good trading plan is very necessary, Hedging is a technique used by traders to lower down risk but initially for a new beginner before using this technique you should have adequate knowledge about hedging.
Dec 17 2021 at 16:22
if anyone ever remember the Swiss bank did in history and wiped out so many accounts in the world and bankrupted many trading Companies over night, then only hedge will keep one live if it happens again.
I use hedging and i think its very useful to minimize risk and maximize profit, but i don't think its 100% necessary to be profitable, there are many ways to be profitable.But i find trades that are hedged to be more efficient than those which are not.
Hedging is a very complicated thing. I mean that you can learn trading from that kind of resources where everything is explained to the non-professionals, but hedging requires some serious background and knowledge. You cannot get the information about how to hedge your deals in a step-by-step instruction. You should also be able to make some sort of research and analyze the charts in a professional way. You should also work with statistics and learn the correlations between various instruments. However, you should know that the game is worth the candle. Hedging is a very efficient tool which helps the traders make their results more consistent and forseeable which is of utmost importance when it comes to determining a successful or unsuccessful traders.
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