TIP: Is Hedging a trading advantatge?
|Some brokers advertise hedging as representing a trading advantage. Hedging means the possibility to buy and sell one currency at the same time. While it can be considered as beneficial, it is only true in the case your trading method really depends on this feature to perform well. Hedging capabilities allow the customer to decide whether to close a trade or offset the trade to reduce risk. But, whether you close a trade or offset with a position in the opposite direction, the profit and loss will be exactly the same. Besides, on a hedged position you pay twice as much spreads, because it is considered like two trades. Read More
Do you want to learn more?
REPORT: Hedging in the Spotlight - FXStreet
VIDEO: Tracking the forex market together / Part I
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.