Hedging
Hedging in Forex is the use of a certain number of tools to reduce risk. In other words, the use of the first tool to reduce the risk that is associated with the negative impact of various factors on the price of the second tool. It uses an asset that is available, or be bought. Before choosing a particular tool, you need to be offset by the negative vibrations of price parameters selected asset. Hedging is considered as a risk forex hedging fluctuations in the value of the asset through the use of tools. Hedging is a strategy as much as possible to reduce risks, therefore it is likely to reduce expected profits. Currently, hedging is used to optimize risk. Hedging is accomplished by opening deals on another instrument that is able to neutralize the projected loss from the opening of the transaction on a different instrument.
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