Importance of hedging
What is "hedging" in trading? It is essentially using positions (trades) that will move in the opposite direction to other positions.
Example: you buy the S&P500, you are "long" S&P500.
If the S&P500 goes up, that's good and you make money.
If the S&P500 goes down, you lose money.
There are several ways to "hedge" this position. You can use options, you ca…
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