I would word it slightly but significantly differently, myself, Amy: I’d say they use it in an attempt to manage risk effectively.
Typically, they mistakenly imagine that they actually benefit from it, because they don’t quite know how to work it out (which, to be fair, is actually really difficult).
It is, for those people, yes - but it’s one based on misinformation, misunderstandings and mistaken beliefs.
There are hundreds of millions of people who believe in astrology, too, and they “know” that they benefit from it.
Some can even “prove” it (because they also tend not to have too solid a grasp on the difference between “proof”, “anecdotal evidence” and “belief”).
No, indeed: no uncertainty at all.
That’s the whole problem: they’re convinced they’re right. And in forum discussions, that’s what actually matters to them.
Two things are certain, though:-
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There are no math graduates among them (or people with any other equivalent, high-level understanding of probability and statistics)
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Not one of them has a sensible answer to the very simple question asked here by the pink bird, which he said he’s asked them hundreds of times, over the decades - and to say it politely there’s a reason for that.
I’ll explain the question, too, in case anyone reads this who doesn’t like following links and working things out for themselves (though that’s actually a better way): if a forex trader - I’m not talking about long-term investors, obviously: that’s a different scenario altogether - is “hedging” against an already-open position, just ask them “What do you gain, by doing that, that you couldn’t have achieved simply by closing or partially closing the original trade (and paying less commission as well)?”
But don’t expect a plausible or credible answer.
The best you’ll ever get is a misguided claim that hedging is an effective way to partially close a position, to mitigate the impact of whatever-the-concern-is, and that their broker doesn’t allow them to partially close, so they “have to hedge” to get round that problem.
Of course, that isn’t really an answer to the question at all: it’s just a sign that they need a better trading platform, broker or both. And that’s the very best, most sensible, most realistic answer you’ll ever hear. 