5 Guide On Use of Forex Hedging Strategy - PowerPoint PPT Presentation

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5 Guide On Use of Forex Hedging Strategy

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You need experience and expert advice before using hedging. Here are 5 Guide on how to use forex hedging strategy. – PowerPoint PPT presentation

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Title: 5 Guide On Use of Forex Hedging Strategy


1
5 Guide on Use of Forex Hedging Strategy
2
Index
  • 1. What is Hedging?
  • 2. 5 Guide On Use of Forex Hedging Strategy
  • 1. Not For New Trader
  • 2. Certain Brokers
  • 3. Timing
  • 4. Large Pip Range
  • 5. Need Patient

3
What is Hedging?
  • Hedging means controlling or reducing risk.
  • This is done by taking a position in the futures
    market that is opposite to the one in a real
    market with the objective of limiting and
    reducing risks associated with price changes.

4
5 Guide On Use of Forex Hedging Strategy
  • In forex trading, hedging is sad to give
    profitable system so traders can buy and sell in
    currency at the same time.
  • However, it can be tricky as well.
  • You need experience and expert advice before
    using hedging.
  • Here are 5 Guide on how to use forex hedging
    strategy.

5
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6
1. Not For New Trader
  • Hedging is not made for a new trader.
  • So if you are a new trader in forex trading, then
    you don't have to use hedging strategy.
  • You need to be used to the current system and be
    good at it first.

7
2. Certain Brokers
  • Several brokers don't allow you to use hedging.
  • They have their reasons for this.
  • Hence, you must make sure that your Forex broker
    is okay with the fact that you are going to use
    hedging.

8
3. Timing
  • Hedging only works some timings.
  • It works well when the market is going sideways
    or when the movements are practically limited to
    the current range.
  • So, follow your timing and use the method
    carefully or you are trapped.

9
4. Large Pip Range
  • Remember that you will need to pay commission
    from your profit.
  • Therefore, you should try to make the larger leap
    on it.
  • You don't need an extraordinary leap but make it
    larger than you usually make.

10
5. Need Patient
  • Being patient means you should wait if your
    market does not make any performance till.
  • Later, in the meantime, the certain move will
    make the balance, and that is your time.
  • Do not force too much or you will break the
    system.

11
Thank You
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