What is hedging in forex trading?

A forex hedge is a transaction implemented to protect an existing or anticipated position from an unwanted move in exchange rates. Alternatively, a trader or investor who is short a foreign currency pair can protect against upside risk using a forex hedge.

In forex, think of a hedge as getting insurance on your trade. Hedging is a way to reduce or cover the amount of loss you would incur if something unexpected

Forex hedging involves opening a position on a currency pair that counteracts possible movements in another currency pair. Assuming the sizes

Forex hedging is the practice of strategically opening new positions in the forex market, as a way to reduce exposure to currency risk · Some forex

Hedging with forex is a strategy used to protect one's position in a currency pair from an adverse move. It is typically a form of short-term

Hedging means taking a position in order to offset the risk of future price fluctuations. It is a very common type of financial transaction that