When we are long or short without hedging , unexpected big moves could wipe out the hard earned profits accumulated over months !!!
More than that if we are properly hedged , we can sleep peacefully !!!
I am net short , but completely hedged . Cant do much for the next two/three days !!!
So over to
Please can you explain how exactly to hedge ?
Yes ,
Please explain in more details. In Step by Step form. So Everyone can able to understand it .
hedging works well in sideways markets if you are writing options but in this market which is clearly directionally downward it may not work that well.
I have exactly opposite views.
In a sideways movement, we lose money because of hedging ( in pfts ).
If it is a clear directional market writers lose money .
For sellers guarding unexpected moves is important.
Yep! Hedging helps one to stay in the game when such “fire & fury” occurs unexpectedly. But despite that when such upheaval takes place, some damage is still done even though the extent is much lower.
looks like you have not read my post & writing the same thing. pls read again.
heding means simultaneously buy and sell at that market price,go see youtube,hedging is a high brokerage charges , different types of hedging explaination on youtube ,go check , some uses hedge without money management and they think heding is a blessed but its a curse ,some do hedge to counter the loss ,etc etc,check out
even if i read multiple times , it won’t make your point right …
you are arguing against the basics
lol … you are completely wrong about hedging …
no bro ,i am only 50 % wrong,you can find different types of hedging explaination on youtube ,go check , some uses hedge without money management and they think heding is a blessed but its a curse ,some do hedge to counter the loss ,etc etc,check out
VelmuruganSengottai, looks like you need to really read zerodha varsity & other basics as you are making comments on other people. This forum is for sharing your ideas if you have one & not to bring others down or make fun.
not making fun about anyone 
anyway thanks for your advice and all the best for your trading career
Well, simultaneous buy and sell can be used for hedging but not always so… If you buy and buy simultaneously it can also create a hedged position, for example, you can buy a future and buy 2 ATM Put options simultaneously to hedge completely or buy a slight OTM Put to partially hedge.
Earlier, when % brokerage system was common, hedging used to be a costly affair but these days with flat 10 or 20 bucks brokerage systems, the cost of hedging has drastically reduced making it viable for retail traders. Hedging can really protect one during overnight black swan events when Stop Losses won’t work. The cost is little compared to the peace of mind are risk reduction capability it provides especially when one is trading with a larger capital.
thanks ,i have also tried many heding method when i was begniers , but now virtual stop loss works 80% for me
