Hedging in Forex
A clear definition of Hedging, with practical context for reading markets and making better trading decisions.
Definition
Reducing an existing financial risk by taking an offsetting position. It is a seatbelt, not a profit trick.
Practical forex example
An exporter expecting US dollars may hedge so an adverse currency move hurts less.
Why Hedging matters
Understanding Hedging helps traders interpret market information, plan decisions, and manage risk with more context.
Related forex terms
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