Basic methods for risk hedging on Forex
For traders who make money on Forex in 2020, the question of hedging is not worth it. Risk hedging on Forex is one of the main points, in addition to making profit, which worries every trader as soon as he enters the currency market. This is due to the fact that the trader wants to protect the existing or potential costs of Forex for opening trades from undesirable fluctuations, which can lead to their loss-making closing. Currency exchange brokers give traders the opportunity to hedge risks on Forex in two main ways: Simple risk hedging on Forex. Comprehensive risk hedging on Forex. Let's take a closer look at each of the ways to insure your money from losing it in Forex trading. Simple risk hedging Some brokers provide traders with the ability to directly hedge risks on Forex, which means you can buy a currency pair and at the same time place trades for sale of the same currency pair. While the net profit will be zero, you can place two types of trades, which