- DE and E.
- Rating of trading platforms
- In both the share price in the domestic currency remains the same.
- Strategy for binary options options
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A well-thought-out hedging strategy helps you dodge losses or at least limit them to a known amount. In this article, we try to help you get a complete understanding of the concept of the triple hedge, helping you successfully spot opportunities and execute trades that have high probabilities of success.
Every hedging strategy involves having a position you buy and the position you sell. For every position, you buy or sell, there is another position which does the opposite buy and sell to protect this initial position.
The reason Triple Play Hedge is better than other mainstream hedging strategies is that in conventional strategies, you generally need to trading on three pairs more money and sacrifice some of your potential profits in order to have an insurance cover over your investments.
This would hedge your positions as no matter which direction the currency moves, the profits and losses will be offset. Once the direction of the market is certain, and it continues to gain momentum, you can close the loss-making trade and maximize profits from the profitable one.
Trading Strategy - Pairs Trade 📈📉
If USD falls, your hedge will offset any loss caused by your short position. Dealing with multiple currencies come with their own risks, there is always a possibility that one position losses more than the other gains, resulting in a net loss, which is often the result of slippages. Trading on three pairs currency hedge — Hedging 3 currency pairs Now let us look at an example of a multiple currency hedge.