What does the word Hedge and the Hedging? The Hedge, coverage in English, is to hedge an investment in order to reduce the risk of an adverse movement in an asset which has the main investment. A typical example in forex would be, for example, buy EUR / USD and cover with a purchase in USD / CHF because these two pairs have a high negative correlation to buy USD / CHF would reduce the risk of a buy position in EUR / USD that would be our primary investment Hedging is the practice that every trader …
