To minimize the loss when our position in opposite direction to the trend, as well as to maximize profits while our position in the direction of the trend, we could use Averaging Strategy. Averaging based on the meaning it is averaging. In the case of open positions, averaging strategy is useful for averaging the position opening […]
Cut loss means we are closing losing positions because prices move opposite to avoid greater losses. SAMPLE CASE Mr. X estimates that the price will rise from 1.2000 to 1.3000 So to get the profit he decided to buy at 1.2000 with the hope the prices will rise so he can close at the higher price and get more […]
Hedging means we are opening two opposite positions, so even if prices rise or fall floating value remains the same. Hedging or Locking the term is taken because when we use this technique we locked position so that the value gains and losses are always moving in tandem. Logically, this hedging technique is not allowed […]