forex hedging

Forex hedging is a tool used to protect traders against losses. It means buying a contract that will rise in value and negate the loss caused by another contract. Hedging is recommended only for experienced forex traders.

When a currency trader enters into a trade with the intent of protecting an existing or anticipated position from an unwanted move in the foreign currency exchange rates, they can be said to have entered into a forex hedge. By utilizing a forex hedge properly, a trader that is long a foreign currency pair, can protect themselves from downside risk; while the trader that is short a foreign currency pair, can protect against upside risk.

The primary methods of hedging currency trades for the retail forex trader is through:

Spot contracts, and
Foreign currency options.

Spot contracts are essentially the regular type of trade that is made by a retail forex trader. Because spot contracts have a very short-term delivery date (two days), they are not the most effective currency hedging vehicle. Regular spot contracts are usually the reason that a hedge is needed, rather than used as the hedge itself.

Read more: What is hedging as it relates to forex trading? | Investopedia http://www.investopedia.com/ask/answ...#ixzz3wWOzlSXU
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forex heddgging ka matlb ha k traders ko kis b qisam k zada se zada nuqsan se bachana ha.isko use karty huy traders ko kam se kam loss ka chance ha or zada se zada earn ka chance b ha.jitna kam loss hofga iutni hi earning b hogi

Brother i want to know that if i wanna try hedging then what should i do i mean how i can start this service ,,is the broker allow it so i should talk to a broker for it please explain a little more about hedging...

My dear friends forex trading market main hedging ka bohat ziada use hota ha or kuch forex traders to hedging allow hi nai karte. or jo forex broker hedging allow nai karte un ko join nai karna chahiye. Instaforex broker sab se best forex broker ha jo hedging bhi allow karta ha.

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efschsi fsfv hfs mjh ees bare me ke forex hedging kia hoti hai kuch nhi pta

Friend main bilkul bhe hedging ki favour main bilkul bhe nahe hoon koin k iss say hum double mind ho jaty hain humeri earning nahe ho sagti hy..............

gee haan ap ki bat ache he keh traders ko market mein hedging ka option istemal krna chahe jb is ki zarorat ho to is trah trader market ko control mein kr ky loss cover kr skta he

bhai loss ko cover karna itna asan nahi ha agr hamy eik side py faida hota ha tu eik side py nuqsan b hota ha tu kasy possible ha ham is sy achi earning hasil kar saky is liye mary khyal ma zarori ha k hamy apna plan creat kar k trading karni chaye..

gee haan bhai hmein apne trading mein hedging krne ka tareeqa ata ho aur hm apne trading mein loss ziada na kia krein aur apne trading mein sahih time pr apne trading market ko hedging kia krein is trah se hmare trading ache hote he aur hm apne trading mein loss ko control krte hien

Hedging aik lehaz say to best hai k ye humery accounts ko safe kerta hai our dosra main us wja say like nahe kerta hoon k us main double mind ho jata hai

mery khayal say forex market mai hedging bohat dangerous trade hai. likan ap hedging es waqat kray jab ap ko forex market mai complete under standing ho tou ap forex market mai zada behatr tareeqay say hedging kr sakty hai.

Re: Forex Hedging

Jab ap ki trade minus mai ja rahi ho tu ap us k against ik or trade same volume k sath laga kar ap apni trade kay profit ya loss ko rouk daity hain or phir jab ap samajty hain kay ab trade ap ki loss wali trade ka loss waha he rouk jaey ga or profit ka be. esleye phir ap jab apni koi ik trade band karain gy tu phir ap ko apny analysis ki base pay daikhna hai k close ki howi trade k alawa ap ki dosri trade kitna acha profit daiti hai.

Re: Forex Hedging

Jab hamari trade ke against mein market move karti hai tab hum hedging ki strategy use karte hai, matlab same pair mein hi phli lagi hue trade ke opposite direction mein dosri trade open kar dete hai aur is tarha hamara nuksan lock ho jata hai.

Suppose kare ke agar humne EUR/USD ko short kia hua hai aur ye trade nuksan mein hai, and kafi had tak jab hume yaken ho jae k market hamari trade ki direction mein nhi aae gi to tab hum EUR/USD mein same lot ki dosri buy ki trade laga denge. is tarha hamara loss wahi lock ho jae ga aur mazed nhi bhare ga.

Re: Forex Hedging

Jab hamari trade ke against mein market move karti hai tab hum hedging ki strategy use karte hai, matlab same pair mein hi phli lagi hue trade ke opposite direction mein dosri trade open kar dete hai aur is tarha hamara nuksan lock ho jata hai.

Suppose kare ke agar humne EUR/USD ko short kia hua hai aur ye trade nuksan mein hai, and kafi had tak jab hume yaken ho jae k market hamari trade ki direction mein nhi aae gi to tab hum EUR/USD mein same lot ki dosri buy ki trade laga denge. is tarha hamara loss wahi lock ho jae ga aur mazed nhi bhare ga.

Sis ap ki hedge trade sy loss tu lock ho jata hai lekin jab ap hedging ko open karain gi tu ap ko bhout sary issues ka samna karna hoga. jab be hedging ki jaye tu ap ko cheye kay hedge wali trade kay analysis kar lain. khas kar us kay fundamental kar lain. some time aisa hota hai ap fundamentally us ko judge nahi karty hain tu ap ki new hedge trade us direction mai nahi jati hai jis ma iap nay us ko hedge kay leye open kiya hota hai.