In terms of forex trading, hedging is a strategy used by traders to protect a trading account from incurring large losses when something unexpected happens, by trading in both directions of a trade. A hedge can be viewed as a form of partial insurance against unexpected events and price movements that could occur and lead to losses in the forex market.
|1||ADSS||2011||FCA, SFC, Central Bank of UAE|
|2||FxPro||2006||CySEC, FCA, FSB, DFSA, SCB|
|3||FIBO Group||1998||FSC, CySEC, FCA|
|4||FXTM||2011||CySEC, FCA, IFSC|
|5||Trading Point of Financial Instruments||2018||FCA|
|6||XM||2009||ASIC, CySEC, IFSC|
|7||XTB||2002||BaFin, CNMV, CySEC, FCA, IFSC|
|8||Admiral Markets||2001||ASIC, CySEC, FCA, MiFID|
|9||City Index||1983||ASIC, FCA, FSA, IIROC, MAS, NFA|
|10||HYCM||1977||CySEC, FCA, MiFID, DFSA, SFC|
As with all trading strategies, hedging has the possibility to lead to losses and should not be considered a safe method of trading. Hedging has its costs and the potential benefits must be taken into account before justifying the cost of a hedge. It is important to remember that the goal of a hedge is not to make money but to protect you from losses.
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