moonchild
VIP Contributor
Hedging is the process entering an opposite position of your trade, for example you buy and sell euro dollars at the same time, so your wins and losses is the same no matter where the market goes so it's easier to manage your losses that way hedging is done by mutual funds and proprietary firms because they enter large positions and provide liquidity to the market.
If you want to hate your position all you have to do is enter the opposite of a trade and wait till you establish a direction bias in the market then you trade in that direction some Traders prefer hedging than stop loss because with a stop loss you take a loss but to a hedging wherever the market later goes you can make profit in that direction
If you want to hate your position all you have to do is enter the opposite of a trade and wait till you establish a direction bias in the market then you trade in that direction some Traders prefer hedging than stop loss because with a stop loss you take a loss but to a hedging wherever the market later goes you can make profit in that direction
