What is the point of hedging?

If you’re going to apply the hedging strategy, first ask your broker wether he allows you to do it. Not all brokers like it when their client does hedging.

Hedging is an excellent way of diversifying risks, with its help one can minimise losses or even close unprofitable positions with zero, which is very cool.

Hedging used to be one of the earliest form of risk management although some brokers don’t really allow it again. What happens in hedging is you go both ways on a currency pair. You can buy and sell the EURUSD at the same time. So that a loss at one end is a gain at the other end, offsetting your losses.