close Binaryoptionadvice

What Is Hedging?

Hedging means to cover all the bases and make profit in any way possible even if the market goes in a direction opposite to what you thought the market would move. Hedging requires you to participate in more than one trade at the same time or to trade with both the higher and lower points of the same asset. This tactic dilutes your risk factor.

The following strategies can be adopted while hedging:

Analyze your risk. Before entering into a trade, you need to analyze you risk if you do not hedge.

Make sure that you can afford to lose the amount of money that you are trading with keeping in mind that the risk factor cannot be elim9inatedf from any kind of trade.

You need to come up with innovative strategies. Once you have done that, you need to test and backtest your strategy on a demo account and not in real life.

Always keep a detailed activity log of your trade and analyze the results of your test. This will help you to make sure if your strategy is working or not. If there is any problem then you will be able to analyze what are the problems that is coming your way and how to solve them.

Join Us

Grab Trading Signals!

We respect your email privacy