Hijing is probably the most misunderstanding method in the world.
This is not allowed technically in US -based accounts, so many traders believe that there is something wrong with this trading procedure.
But if you look closely, there are many benefits of forex hedging that I will go to this article.
You might change your mind.
Although hedging has many benefits, remember that there is no magical trade strategy that is guaranteed to make money.
The trading strategies you use match your commercial personality and should exercise extensively to master.
At the same time, let’s enter it.
1. Need less or no margins
https://www.youtube.com/watch?v=a2jkmgjdtbg
Depending on the broker you use, half the amount of margin in the hedge position, or even a margin may be required.
For example, we say that you are the length of the eurosed at the same time, and the short 1 standard lot.
If the margin for 1 standard lot is $ 250, you will have to keep only $ 250 for both positions, which will usually cost you $ 500.
In some brokers, if you have a complete hedge (1: 1) position, you don’t need any margin.
This is a huge advantage because you can mainly get double profit opportunities at half price.
Of course, there is twice the opportunity to suffer.
But if you know what you are doing and adhere to your hejing strategy, the use of low margins is usually a very good thing.
It gives you more opportunity to lose trade.
Unfortunately, if you hed in a US -based account, it does not apply. But it is still possible to have hedge in a US -based account
More on it.
2. The ability to make money in both directions
Almost all trade strategies require that you choose the direction that you think will go to the market.
This is either up or down.
But with hedge, I can potentially make money in both directions.
Even I have staged demonstrations where I have opened a long and short trade simultaneously and made pure profits on both trade.
In this way, it is contrary to any other trading procedure there.
Now, with all justice, this can increase to a great extent, so it is important that the real amount is essential to learning hedge in a demo or fake account before risking the real amount.
However, hedging gives me more opportunities, and it makes my job easier.
If you want to find out more about hedging, I must read my hedging guide for starters.
3. The ability to wait for more information
This is a huge big.
Have you ever thought that the price will go in one direction, but as you have seen more candles, it’s quite clear that you were wrong about your initial prediction?
Of course, it is in trade all the time.
The beauty of hedge is that I can take a position in both directions and wait until the market gives me a solid clue that it will move in one direction or the other.
This can be a huge advantage as many times the markets will throw “fake outs” before taking a big move in the opposite direction.
Although I can be very sure about the initial position, that picture can change rapidly and hedge gives me the ability to adjust.
4. Low tension
Sometimes I don’t feel like a trade.
When that happens, I can easily hed my positions and when I feel like that, I can go back to them.
Certainly, I will lose a little money on exchange.
But the ability to take a break is invaluable.
Try to do this with any other commercial procedure there.
In the upper part of it, I never have to worry if I refrain from any trade … even during the role over.
If you are trading for any length, you know that when you go to check your chart, the sinking feeling and you have just been stopped.
Not the best way to start the day.
Stop continuously several times and it can start to mess with your confidence.
With hedge, there is no stop damage, so I never need to worry about stopping.
I just do the losing position and move on.
A hedge still limits my risk, while giving me a profit in any direction.
5. The ability to make inactive income
There was a time when the Japanese yen was a popular currency for trade because the interest rate between the yen and the US dollar was so high that traders could only benefit from interest.
Traders were just earning a huge amount of money by holding their positions.
It was rumored that even Japanese domestic women were trading this method because it was so simple and reliable.
I know a businessman who made this whole time as his only strategy.
But all the good things are gone and the trade eventually stopped working.
Some traders lost their entire account.
However, if you use hedging to target high interest rate trade trade, it is possible to take advantage of this procedure on a short period of time, limiting your risk.
6. LIFELY LECUIDY AND LIGHT FAIL
A reason I prefer Forex Hagging Because the market is widespread.
Forex is the largest trading market in the world.
Since there are more traders to take the other side of your trade, you are more likely to get a price on your screen and face less slippery.
Other markets like Futures, options and Crypto have very little liquidity, which means that you may not get your price or you may not enter any trade.
In the upper part, Forex usually reduces the cost of transactions than other markets, especially in small commercial sizes.
So it is perfect for a wide range of traders, from the beginning to the profession.
7. Maximum flexibility
Hijing pair with Scaling Is powerful.
Instead of taking the entire trade in a large part, the scaling is opening and closing in parts.
For example, we say that I want to trade a full trade of 3 standard lots.
Instead of opening trading with all 3 lots at the same time, I can take 1 lot to start, then see what the market does.
If the price does not expect me, I can only do 1 lot of hedges instead of heating 3 lots.
Skying in trade can also help me get a better average price by entering together.
I can insert 1 a lot to start, then see what the price is. If the price process is still favorable, but it increases slightly against me, I can enter trade 2 and 3, but at a lower cost than the first trade.
That’s what is meant to get out.
I can set 3 profit goals to capture a small, medium and large profit.
If my last profit target is not affected and it seems that the price will return to my registration, I can close trade in more expected profits than expected.
Now this ability is double both long and short.
As you can see, when I use hedging and scaling together, it gives me more flexibility to go with the flow of markets.
8. Other trading strategies can be included in
Hijing can be a business strategy in itself.
However, If you connect it to other trading strategies, it can be a powerful way to get out of trade that doesn’t work.
This is especially useful if you have a trading strategy that has high win rate, but you want to increase the overall return of this procedure.
If a trade does not work according to the principles of your strategy, you can make a way out of the hedge.
Once again, before trading you will have to master your hedging “escape” method.
But this can already be a good increase in a profitable strategy.
9. More Permanent Return
I have personally found that hezing produces more permanent profits than most other trading strategies.
Depending on the level of skill, individual results will be clearly different.
I’m not saying that you guarantee that there is a more permanent profit, but in my experience, this is definitely possible.
Find it with low stress and more flexibility, and that’s why I enjoy hedging.
10. can be done in a forex account based in the United States
https://www.youtube.com/watch?v=zmjlbcefhxy
Unlike popular beliefs, you can Legally Hed to the US Forex account.
It is not hedging in the traditional sense, but it is effectively The same thing.
Hijing is not so easy in the United States and has more patience, but it can be done.
I did not recommend thatBut if you insist on using a broker in the United States, just know that this is possible.
The final views
Just like any other trading procedure, the benefits of forex hedging are and down.
This is not for all.
But if this list of benefits appeals to you, then read my free Forex Hagging Guide to start with this underworld trading method.
As always, remember to start in the demo account and use the play money to complete your abilities before risking the real amount.
