Hedging

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?

Hedging is very risky. You need to have proper knowledge about it before using it.

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

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.

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

Hedging is a risk management strategy. But some use it for making a profit.

Why is hedging considered difficult than scalping, and what is the risk ratio between hedging and other trading methods like scalping or day trading?

You can also have a look at this book for hedging. It is available on amazon.

https://www.amazon.in/Option-Strategy-Hedging-Management-Depth/dp/0996182322/ref=sr_1_8?crid=22GQT9Z6SNOLH&dchild=1&keywords=hedging+strategies&qid=1626758299&s=books&sprefix=hedging+%2Cstripbooks%2C292&sr=1-8

@ 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.

It is a risky strategy and many brokers don’t allow it.

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.