I’m sure that all of the trader like this trading system. I like too using this system.But I’m already using hedging systemin some broker such as fbs, liteforex, mayzus, and fxpro. Its work well there. But in manual, I’m really confused because i do not know which must be closed. can you share your opinion and suggestion here
DEFINITION OF 'HEDGE’
Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.
An example of a hedge would be if you owned a stock, then sold a futures contract stating that you will sell your stock at a set price, therefore avoiding market fluctuations.
Investors use this strategy when they are unsure of what the market will do. A perfect hedge reduces your risk to nothing (except for the cost of the hedge).
Hedging involves taking an offsetting position in a derivative in order to balance any gains and losses to the underlying asset. Hedging attempts to eliminate the volatility associated with the price of an asset by taking offsetting positions contrary to what the investor currently has. The main purpose of speculation, on the other hand, is to profit from betting on the direction in which an asset will be moving.
Hedgers reduce their risk by taking an opposite position in the market to what they are trying to hedge. The ideal situation in hedging would be to cause one effect to cancel out another.
@agoenk82 Are you hedging to minimize opened positions risk? Or are you using it to collect pips through slippage? I have a feeling that you may had over hedged your position across the brokers, if you did do that it is definitely time for you to remodel your portfolio.