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What is hedging? How do I place a hedge order?

hedge hedging
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What is hedging? How do I place a hedge order?

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Once a position is already established, you have the ability to take the opposite side by clicking the “Hedge Box”. As opposed to closing out the position you now have an opportunity to lock in a profit or a even a loss. Hedging is a very useful tool for those traders that know how to use it properly. Hedging an open position involves placing an exactly opposite trade. Normally, the opposing trades cancel each other out, closing the position. But with our hedging feature, both trades remain active. For example, let’s say you bought GBP/USD. You can hedge your position by selling GBP/USD. Both will remain separate active positions, rather than canceling each other out. Hedging gives the trader upside potential, whichever direction the market heads. It is important that you fully understand how hedging works and how to properly use it before placing any hedge orders. Hedging is an additional feature we have added for the benefit of our clients, and is by no means a required action. No ad

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