Hedging means buying an currency to reduce the risk of loss from other assets. Hedging in the Forex market is usually done to protect the account or trade from severe and cross-market fluctuations. For example, you have a trade or position on the euro-dollar pair (for example, a sell position) and it is supposed to affect this currency pair by announcing important news. At this time, some people make a reverse trade with the same volume (in this example, a buying position) that severe market fluctuations do not affect their profits and losses. It close the reverse trade after the market goes through severe fluctuations. This example is one of the uses of Hedging in the literal sense among traders.