Hedging Strategy Explained
Traders earn money through taking risks in the stock, currencies and commodities markets. They can also lose money which is why a strong risk management system is important to be put in place prior to even touch the platform. This helps to determine the capital necessary to make this form of trading viable and then consider if it is still worth it for you as a trader. With binary options, traders have the best of both worlds: they have the predetermined costs/risk and possible gains before they start trading a stock and the profit that they can get from it is comparable if not larger than the riskier form of stock option. As you will now see a hedging strategy is an excellent way to keep your capital for as long as possible.