John Baldock Posted October 20, 2020 Share Posted October 20, 2020 Hi, I would like to learn more about hedging in Forex. Quote Link to comment Share on other sites More sharing options...
1 Tobias Jackson Posted October 20, 2020 Share Posted October 20, 2020 Hedging is a way to avoid the risk of losing money due to fluctuating exchange rates. For instance, a company can reduce the risk by shorting the Euro and buying the USD. That way, if the dollar rose in value, the profits from the trade would offset the losses on the other side and vice versa. Quote Link to comment Share on other sites More sharing options...
0 Thisings Posted March 7 Share Posted March 7 Hedging is a term used to describe a strategy that protects traders from adverse movements in currencies such as the USD/CAD pair. A trader might have bought a position in CAD/USD and now wants to protect himself from the possibility that the value of the Canadian Dollar will fall. He can do this by selling some of the CAD/USD position in anticipation of the drop. This is called hedging because he has taken out insurance against the possibility of losing money. Quote Link to comment Share on other sites More sharing options...
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John Baldock
Hi, I would like to learn more about hedging in Forex.
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