Hi traders,
I have a question that I would really like answered. How do hedges work and how do you find what to hedge?
I'm curios because often, trades will go against you. So what I end up doing is hedging on the same pair. In theory, all you need to do is find the right time to unhedge and you will start making money. So that initial mistake is not too much of a liability.
The problem is: if you know when to unhedge, you wouldn't be in this situation in the first place (because you need to be able to determine where the price is headed)
I know hedges work. People all over the world use it to manage risks. But how does it work? And how do you qualify a pair (or multiple pairs) to hedge? more importantly, how do you use it to make money?
Can any experienced traders educate me please?
I have a question that I would really like answered. How do hedges work and how do you find what to hedge?
I'm curios because often, trades will go against you. So what I end up doing is hedging on the same pair. In theory, all you need to do is find the right time to unhedge and you will start making money. So that initial mistake is not too much of a liability.
The problem is: if you know when to unhedge, you wouldn't be in this situation in the first place (because you need to be able to determine where the price is headed)
I know hedges work. People all over the world use it to manage risks. But how does it work? And how do you qualify a pair (or multiple pairs) to hedge? more importantly, how do you use it to make money?
Can any experienced traders educate me please?