Hedging is often used by pro traders. In simple terms hedging involves opening a buy and sell order at the same time. US brokers don’t allow hedging as it is against CFTC rules. Non US based brokers have no problem with hedging. This was a simple explanation of what is hedging. But you need to learn more if you want to use hedging in your trading. Watch the video tutorials below that explain in detail what is hedging all about and how you can build a grid that can minimize your losses and always keep you profitable.
This video tutorial explains how to hedge in forex without breaking the No Hedging Rule. Something important for US based traders.