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Brokers For Hedging Strategy

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Hedging is when you open two trades in the same pair, which is equally sized but in opposite directions. Hedging, at least in theory, negates the need to set a hard stop loss on either long or short trades being hedged. The advantage of hedging is when the markets (especially Forex markets) tend to range most of the time, it can be possible to profit just from high volatility within a range by closing the long trade at a peak and the short trade at a trough.

Many brokers do not allow hedging, but some do. Brokers that allow hedging give traders the flexibility to buy and sell at once. By here, you will find some forex brokers that allow hedging for their clients.


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Hedging with pending orders means we place pending orders on a certain price as protection for another position we have taken before. Thus, if the price indeed deviates from our prediction when we are away from the chart, the pending order will automatically be active to prevent losses in the previous trade.

For example:

We open buy EUR/USD order at 1.3000 and then place pending order (sell stop) at 1.2950 in the same pair. That way, if price goes down, then pending order will be activated and prevent losses in the floating position.

Continue Reading at Using Hedging As Stop Loss Alternative

Using the hedging strategy in forex is actually considered illegal in certain countries, particularly the US. This means that all forex brokers that are based in the States simply prohibit the use of hedging in forex trading.

It is worth noting that not all hedging methods are illegal, but the idea of opening two opposite positions in the same currency pair is certainly illegal within the country. The primary reason why the US bans hedging is that it costs traders double spreads which obviously favors the broker more than the trader.

Continue Reading at Why Is Hedging Not Allowed in Some Countries?

FBS $50 No Deposit Bonus, AGEA $5 No Deposit Bonus, FXOpen $10 No Deposit Bonus.

Continue Reading at Forex Brokers with No Deposit Bonus

You can use hedging strategies to limit losses or lock in profits on short-term currency movements. Hedging strategies can reduce risk and exposure to market fluctuations, but they can also increase profits if properly executed.

Continue Reading at Top 3 Forex Micro Account Strategies


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