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Hedging Forex Brokers
Forex brokers for hedging - List of Forex brokers that support hedging based on NFA rules.
From May 15, 2009, NFA no longer allow hedging for NFA regulated Forex brokers.
Quote from NFA Release on Compliance Rule 2-43 (PDF file):
Although many of the FDMs admit that customers receive no financial benefit by carrying opposite positions, some FDMs believe that if they do not offer the strategy they will lose business to domestic and foreign firms that do.
What is hedging?
To make it simple: Hedging protect your account against big loss in case something unexpected happen as it allow you to trade the opposite direction of your first trade (loose trade) without closing the first trade. In that case you can make profit with the second trade (hedge trade) while the first trade still against the market (lose trade).
When you think the price is going reverse you can close the hedge trade/ or set a stop on it.
Hedging is like buying insurance and limit risk for your trade but playing with hedging without well-understanding about the market swing could give more loss to your account.
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