Forex SSR 4

Foreign exchange hedging techniques are utilized by some traders to protect their profits against possible reversals while leaving the first trade open. Other traders avoid it because they believe it will be too complicated. But that doesn’t have to be right. The advantage of opening the second trade later is to guard profits already gained.

Assuming that your main position is in the spot forex market, the secondary or opposing trade could be in the same market or another. It might be another spot exchange either in the same currency pair or in a different but related currency pair. It could also be in another market, for example forex derivatives, that is, options or futures. Currency exchange options is the most popular choice.