Have you ever tried hedge-mode trading? If not then this post is for you. First we understand hedge mode trading and at what situations this strategy can be used for the better profit. I will also share a best strategy with hedge mode trading which is surely profitable.
Hedge trading is called such a mode which keeps canceling each other. One position always cancels the other and in result there will no profit and loss. Meaning if you long Hive coin then at the same price shorting it will be called hedge mode trading. Sometimes you have seen that some traders activate this mode and in one coin take both long and short positions. There is no profit and loss until any position is closed.
A kind of trading where after opening the positions, only your loss is trading fee. Till that time there is no loss when both positions are open. When one is closed then profit and loss step will start. At what time traders use hedge trading? Its an important question and the main part of this post. If you will understand this then surely you will take the best use of hedge trading.
When to Use Hedge Trading???
Hedge trading is not always used, but only in special conditions. Any coin whose trend is not clear either its bullish or bearish and any coin which is at breakout level then this hedge mode trading is used.
For example we see that Hive bias is not known whether bullish or bearish or in other words it is going sideways. So you have to find its range what is sideways range levels. Mark it and start hedge trading in Hive. Open long and short positions from same price.
Whenever Hive price touches upper range then you have to close long position and short position remain active. And when it touches low range then close short position and hold long so that by recovery back you get profit.
In the same way some coins are at breakout positions. Meaning there is 50% chance that from this level breakout is possible. Then in such case you have to open hedge trading and wait that either it pumps or dumps.
If it breaks out then in such condition long will give you profit and you close long and keep short position open because correction surely comes. If in case breakout does not happen then in that condition coin price will fall and you close short position and hold long position.
Remember the two important cases
This is real best use of hedge mode in trading. These 2 cases you have to keep in mind in special conditions. Whenever you see coins in these cases then you have to take best benefit from hedge mode trading. This is a best chance to benefit from sideways market and breakout strategy.
Have you ever used hedge trading, did you get profit from this strategy, from my this post what did you understand, express your opinion so that in next post improvement comes.
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IMAGE TAKEN FROM CANVA
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