Hi traders,
I've a question which I would really like answered. How do hedges work and how do you discover what to hedge?
I am curios because frequently, 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 begin earning money. So that first mistake isn't too much of a liability.
The challenge is: should you understand when to unhedge, you wouldn't be in this situation in the first place (since you need to be able to ascertain where the price is led )
I understand hedges get the job done. People all over the world use it in order to manage risks. But how does this function? And how do you qualify a pair (or multiple pairs) to hedge? More importantly, how do you use it to generate income?
Can any experienced traders edue me please?