Hedging

Hedging your trades by being long and short at the same time.

I will get into that later. It involves using another account and taking the opposite position. I originally was doing it long term with stocks. Depending on how one hedges, here are a few possible results:

– A “winner” is slightly reduced
– A “loser” is slightly reduced
– Both long and short trades close for a profit on both sides

There are a few more possibilities, too, but I’ll discuss those later.

I could write a book on hedging. There are so many possibilities that most people don’t even think of.

Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *