hedging in forex is covering your open position (s) with a counterposition.
The reason to hedge can be that there is a news coming out what can give a big countermove to your original position or to cover a open position against a shorter countertrend form the original direction.
As i found out it is relevant for the safety of your account to use a combination from stop loss and hedge posibility.If you realy see that the trend completely changed better stop your loosing position and stay with your hedge position(from that moment this will be not seen anymore as a hedge since the original (loosing) position is closed).
If you stay to long with both positions open it could dammage your account severe.It is very tricky to follow it up with both positions open...and stressfull.
So to ceep it short:Hedge we only do when expecting a counter trend move against our open position.
Hedge we do for a shorter period , unless we have a big trading capital behind us to cover us for a rebounce .
gge2008
