Hedging in trading is a strategy used to manage risk. It involves taking an opposite position in an asset to (offset) – (ชดเชย) potential losses in another holding. Imagine holding an umbrella (hedge) to protect yourself from the rain (potential loss) – (การสูญเสียที่อาจเกิดขึ้น). Here’s a breakdown of hedging: Here’s a simplified example: Important to Remember:
A stop-loss order is a fundamental tool in the arsenal of any trader or investor. It’s an instruction you give your broker to automatically exit a position, either buying or selling, when the price reaches a specific level you pre-determine. Essentially, it acts as a safety net, limiting your potential losses on a trade. Here’s
Risk tolerance is a crucial concept in any field that involves making decisions under uncertainty, especially something like trading or investing. It refers to the maximum level of potential loss you are comfortable with when pursuing a particular activity or goal. Essentially, it’s how much “pain” you can handle before it affects your well-being or
Risk management is the absolute cornerstone of success in forex trading. It doesn’t guarantee profits, but it can protect your capital and allow you to survive the inevitable losses that come with any trading endeavor. Here are some key elements of risk management in forex: 1. Understand your risk tolerance: 2. Use stop-loss orders: 3.
