Hedging Strategy in Forex Trading

Hedging Strategy in Forex Trading

Written by: PaxForex analytics dept - Friday, 07 February 2020 0 comments

In trading financial markets there is such a notion as risk hedging. It appeared long ago and was initially used by companies carrying out the trading activity. It turns out that mastery of this technique can help reduce the risk of this or that trade. Since currency risk hedging is defined as holding two or more positions simultaneously. Its purpose is to compensate for losses on one currency position by the profit gained from trading another position.