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Why I Hate Hedging

Why I Hate Hedging

6 Years ago | November 08, 2013 00:00:00

You may ask why I entitled this article Why I Hate Hedging. It refers to retail forex hedging, a term manufactured by forex brokers to create more volume. Some retail forex traders may argue otherwise but I see it benefiting the broker and not the trader. All it does is create two offsetting positions in the same currency (i.e. one long, one short in like amounts), which is the same as being flat but giving the appearance of having two independent positions on.

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