Module for Traders
Introduction to Options and Futures
Open Free* Demat Account | Enjoy Free Equity Delivery Trade For Lifetime
What are the advantages of hedging?
01:11 Mins Read
Hedging is a popular trading strategy that helps cap your losses. Curious? Watch the video to know more.
Transcript
What are the advantages of hedging? Hedging your position using futures and options has many advantages. Firstly, it limits your losses and protects your profits Secondly, hedging also increases the liquidity in the financial markets Since traders who practice hedging generally trade in multiple markets like the stock market, the commodity market and the derivatives market. Additionally, hedging saves time for traders like you Because once you’ve hedged your trades, you need not spend much time tracking the asset or adjusting your portfolio. All in all, hedging can be a very beneficial strategy when done right. You can hedge your positions using derivatives, as we saw earlier, And also using commodities or currencies. In the next module of Smart Money, we’ll learn more about these financial markets. Keep reading to keep learning.
Get Information Mindfulness!
Catch-up With Market
News in 60 Seconds.
The perfect starter to begin and stay tuned with your learning journey anytime and anywhere.
Visit Website

Get Information Mindfulness!
Catch-up With Market
News in 60 Seconds.

The perfect starter to begin and stay tuned with your learning journey anytime and anywhere.
