The Power of Hedging in Forex

Hedging in Forex is to have both sell and buy open positions for the same currency on the same account, It eliminates exposure to the market and eliminates risk unless spreads are widened. If an account does not allow hedging then each sell order will offset an existing buy order and so is the other way around, but when hedging enabled each buy or sell is entered and tracked individually, and because hedged trades require no margin by legitimate brokers it is popular specially among those traders who learned how to handle it. On May 2009, The US NFA released rule that prohibits hedging on all US based Forex accounts even if MT4 is used, this rule resulted in migration of thousands of accounts to the UK..Visit http://www.forexbody.com for highest quality Forex trading videos and unbiased fast Forex trading information.

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