What is Hedging

[ali200]

I really want to know about hedging, what is hedging, how to use it and when to use it, I know about stop loss, take profit and trailing stop, also have some information about buy stop orders or selling stop orders i know about pending orders in Forex trading but Hedging is some thing new to me, May use this tool or utility in Meta trader 4 account or not, please guide me.

http://www.forex-metal.com/affiliate/46199/2

[uncle gober]

Hedging is a strategy where we can open a new open buy and sell orders (or to simultaneously) in the same currency without closing one position. This technique is used to lock a position that was having a floating minus.

[orni308]

Hedging is a strategy where we can open a new open buy and sell orders (or to simultaneously) in the same currency without closing one position. This technique is used to lock a position that was having a floating minus.

Very nicely explained ...thanks , but why some traders don't allow it.......

[Gaban]

hedging is a two-way transaction. where we sell and buy in the same currency. This hedging techniques, so give a little advantage for us. Therefore, I prefer trading with scalping.

[Tanzil Al Banna]

I see, there have so many different types of trading style, because I use permanently scalping trading as this is the most suitable trading style for me and for my trading capital. Actually I believe scalping is the most preferable trading style for all intraday trader! Besides, I get narrowest trading spreads with no slippage guarantee from TradingBanks broker. That’s way, I am computable with scalping trading.

[ForexMartTrader]

The best time to hedge is when you have no clue about the trend, and you hedge by opening equal orders in opposite directions. Then you collapse one direction when the trend becomes clear. It is wrong to wait until you have losing trade, then hedge by opening opposite order and removing the stop loss. This will only compound your loss. 

[Bill Lawry]

Forex gives us many opportunities to make money. We got many trading system which we can use for trading. Hedging is one of trading methods. I love this method. Hedging means to buy and sell at the same time or inside a short period. For hedging we need a good execution system. For good execution I like to AAFX as my broker. They got an updated MT4 platform which has very good execution system.