Hedging
What it is
Opening a position that offsets another, to reduce risk temporarily (for example, before news) or across correlated pairs.
The rules
SetupA clear reason: protecting an existing position for a known period.EntryAn opposite or correlated position sized to the risk you want to cancel.StopPlan how and when both sides will be closed.TargetRemoving the hedge when the risk has passed.
When it fails
When used to avoid taking a loss: you pay spread and swap twice and the loss is still there.
Risk profile
Often misused. Not allowed by some brokers (US) or prop firms across accounts.
Who it suits
Experienced traders with a specific, temporary purpose.
Education, not advice. Goldman Academy teaches how markets and tools work. Nothing here is a recommendation to buy or sell, and no lesson promises profits. Trading leveraged products carries a high risk of losing money; only trade money you can afford to lose.