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Hedging


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Hedging is one of the risk management strategies in the forex market. It involves engaging in simultaneous buying and selling orders of a specified currency pairs. An example will clear it: if a trader faces loss in selling a pair, he will make profit in buying the same, thereby net profit is zero. My broker AAFX is providing me all innovative trading facilities like hedging, binary option trading, EA trading, etc.

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Hedging is a trading strategy used by many forex traders. When traders executes a buy and sell order at a time it’s called hedging. Many traders use it as risk management. Most of the brokers do not allow this kind of trading style. That’s why I choose CapitalsTrade. They allow all kind of trading style such as hedging, scalping, swing trading, news trading, breakout trading etc. they also providing me low tight spread and high leverage 1:500.

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In order to be successful in the forex market forex traders should properly manage money and must go for some advanced risk management. One of the most popular risk management techniques is hedging. In hedging a trader enters in simultaneous buying and selling order on a currency pair so that his net risk of losing money in any direction will become zero. But it requires a good understanding of forex market so that trader can effectively take better decision.

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