Hello. Please excuse me for my newbie question. I want to hedge my forex positions (i.e buy or sell ) with other financial instruments with no loss to my capital. Is it possible anyway ? How i can do this if this possible ? Thanks.
Hello ilqar! According to my trading knowledge and experience, hedging is not suitable trading style for new Forex traders! It would be better for you, if you work with stop loss and take profit trading tool in your trading! But yeah, it’s true there have some professional Forex traders who mainly use hedging trading style! By the way, best of luck for your learning!
1 Like
Not really, for retail traders: mostly, it’s a way of escalating dealing-costs without actually benefitting from it.
This related thread from the other day might help/interest you.
Maybe many retail trader they fail in trading and losing money, but many retail trader still interested in forex because still look forex as potential source income
What [I]on Earth[/I] does that have to do either with the OP’s question or with my response to it, Bearish?! You keep on and on apparently posting your trite, generalised observations just in random threads, without actually reading them?! 
One can hedge the positions to reduce the loss, but the losses cannot be avoided completely…
Hi Ilqar,
Depends on what your losses are? If they are too big this will not work. If they are only small, you can hedge against another currency… eg if you are trading EURUSD, you could hedge against USDCHF.
You really need to study this to understand it. Its, not as simple as it sounds.
But in essence what you could do is open a hedged trade with the same lot size. Then wait and see if it moves in your favor. If it moves against you, open 2 more trades same lot size with both currency pairs. You can keep opening currency pairs with the same lot sizes until it moves in your favor.
Sounds confusing? Yeah, you need to evaluate if the pair will actually move in your favor.
I have used this technique and it works. But it could be risky, depending on your account size…
I have tried a lot of hedging systems based on this method. Hedging up to 23 currency pairs.
https://www.myfxbook.com/members/arbus/hedger-bot/238639
This one used a lot multiplier, but it is not needed to hedge a currency pair.
Its not possible that you won’t get a loss in a method used for trading. Loss is a part of forex trading, you have to accept this fact before you enter in this gigantic market. About hedging, its not a very reputed strategy but you can do research to find some good methods of hedging profitably.
From my opinion- “Hedging” is a good way to cover your loss, but it’s not something that will bring you significant profit. If you are looking to secure profit by any sort of “hedging” related strategy, then brother you will be in trouble. I have seen very few traders who actually made profit out of it. And as you are new here, I will strongly recommend you not to use it. Get used to the market for another year, trade with traditional approaches, then you can look for something else.
You can hedge your position by doing [I]triangular arbitrage in currencies [/I]only but that is bit tough to do being a newbie. Other way is [I]invest in stocks or indices and doing cash and carry trade(buying in spot and selling at future) [/I]which create the riskless trading . Also profit and loss both are part of Forex trading if you are ready to cup the profits, stay ready for losses too. Try to minimize your loss, you can’t avoid it. There is no such strategy of no loss, in that case better option is bank deposit.
I ever reading certain article trading no loss, with choose two broker which one account use swap account and one broker choose free swap account, then open on pair that having positive spread and one order on free swap account open opposite order from one broker that has swap account, these trader hope from profit on swap account and close both if already profit, but I am never try it
Hedging could be quite difficult for a beginner it would do you good to follow Jonathan’s advice but for a simple description of how you could do it , You place a trade by buying a currency pair and then at the same time you can place a trade to sell the same pair. While the net profit is zero while you have both trades open, you can make more money without incurring additional risk if you time the market just right.