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OE Companion Discussion Group

Basically, hedging is a way of managing your investment risks by making opposite deals, diversifying your portfolio, using futures contracts, and so on. However, this term doesn’t include actual insurance, because hedging is very different from that. Risk hedging includes any manipulations to minimize the probability that the market price of some trading tool will change too much over a specific time period.

Read the detailed hedging strategy explanation: https://www.scoopearth.com/choosing-the-best-hedging-strategy-a-brief-guide-for-novice-traders/