What is Hedging?
4XC
Last Update 6 months ago
In simplest terms, "Hedging" is a strategy used to minimize market risk, whereby one position protects another.
If you buy 1 lot EURUSD on a hedging account and then with another trade sell 1 lot EURUSD, then you will have at the same time two opposite positions. As a consequence, two opposite positions with the same size provide a Hedged Margin and limit your exposure to price fluctuation.