how does hedging work in forex?
I haven’t been able to figure it out. If you invest in two different currency pairs that mirror each other, how does a person expect to make any money, Does anyone know how to do this? which currency pairs do you use and how much can a person hope to earn, percentage wise, in relation to their original investment.
Also I currently use Oanda any problems I should know about regarding this broker?
Thanks in advance
This is a position or a combination of positions that helps to reduce the risks of your primary position. Example: you own a stock and you sell a futures contract that ensure you will [later] sell your stock at a set price. By doing this, you avoid any Stock Market fluctuations and you do not lose any money.
http://www.NecessaryInfo.info/Forex_Glossary_of_Terms-H-I.html
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