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I want to know about cause about some traders hedge the positions

Topic: I want to know about cause about some traders hedge the positions

why do some traders hedge the positions ?
We all had positions going against us. Some traders like to put a hedge on same pair to protect themself.

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Re: I want to know about cause about some traders hedge the positions

I think that some individuals area unit ready to trade with hedges as a result of they're not mercantilism directionally. Their aim is simply to require advantage of volatility and do not even attempt to guess whether or not one thing goes up or down, as long because it moves

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Re: I want to know about cause about some traders hedge the positions

I think that some individuals area unit ready to trade with hedges as a result of they're not mercantilism directionally. Their aim is simply to require advantage of volatility and do not even attempt to guess whether or not one thing goes up or down, as long because it moves

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Re: I want to know about cause about some traders hedge the positions

Some traders don't desire to take a position or just do not know that direction the position is heading. Hedging permits for them to cut back their risks so that they will acknowledge a gain (albeit smaller than one position) once there is volatility. The draw back is that if the position does not move, they will suffer a loss.

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Re: I want to know about cause about some traders hedge the positions

I think that so as to own a tangible success in forex trading, one must have some risk management methods, and one amongst the foremost effective technique is thru hedging. If you've got a deep understanding of the larger image and also the conditions around it, then hedging may be useful.

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Re: I want to know about cause about some traders hedge the positions

actually heading is to safe your free margin and floating but it is very difficult to remove hedging only experienced traders can do that.

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Re: I want to know about cause about some traders hedge the positions

Can I know what is meant by hedge.An answer shall be appreciated.

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