Is hedging a good trading strategy?

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
One of the ways to protect your account when trading forex is to use the hedging trading technic. There are many techniques used to hedge a position, but the logic behind is simple. When you are in a long position in a specific currency pair you will take another position that would protect your trade should the currency pair move downward.
 

Rob Taylor

Active Trader
Oct 14, 2012
131
2
37
UK
www.tradeforexmakemoney.co.uk
Hedging can be a very good strategy if you know how to use it correctly, but opening a buy and sell position in the same currency pair is not something i would recommend, and is not a good hedging strategy.
 

eyeball

Master Trader
Sep 25, 2011
164
12
49
Hedging a losing position to protect against further losses only postpones the inevitable and can magnify a minor loss into a major problem. Your first loss is ALWAYS your best loss
 

triplet

Active Trader
Oct 7, 2014
101
4
27
Not all brokers allow hedging but hedging can help a trader minimize risk and so it can be a useful too in risk management
 

alexflemj

Active Trader
Nov 9, 2011
69
1
27
Can automatic trading help with hedging? I've heard of EA's that provide good ways to keep your positions "safe".Also, does hedging work on all timings? I mean you must aim at a larger pip profit, keeping the broker's commission in mind which suggests keeping your positions long term.