Hedging

24.07.2017

Hedging in a Forex market context means reducing the risks of trading currency via protecting funds from unwanted rate fluctuations. More often than not, sharp changes in the market trend mean hedgers opening two positions in the direction of the new trend against one position in the direction of the previous trend. This means that the trader hedges one trade for a sale in case the trend on the Forex market changes by opening two positions to buy.

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Trading Forex on margin offers good opportunities to receive high profit, and carries a high level of risk. Prior to trading you should make sure you fully understand all the risks involved and take into consideration your level of experience and financial situation.

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