Hedging

Hedging

Financial activities, and especially activities related to earnings at constantly changing exchange rates, invariably involve various risks. The risk of loss, which arose due to the adverse change in the exchange rate of one of the currencies, was called the currency risk.

Such currency risks are peculiar to foreign trade activity. At the same time, as a result of the depreciation of the payment currency, the exporter loses, and as a result of the increase, the importer loses. In the sphere of bank savings, deposits in precious metal or foreign currency are risky.

Professionals in this field have long thought about how to at least partially protect themselves from the consequences of an unsuccessful outcome of a venture. Thus, one of the methods of stabilization and guarantee of currency activity is hedging of currency risks. It is carried out in the form of the conclusion of urgent transactions, in order to avoid undesirable fluctuation of prices for currencies. Hedging currency risks is a reliable way to protect finances from damage caused by undesirable movement of exchange rates. The value of the currency at the time of conclusion of the transaction is fixed in the foreign exchange market.

Hedging is one of the ways of insurance of currency risks. Along with it, the services of specialized organizations on insurance of transactions, the choice of foreign trade contract currency and much more are also practiced. For Forex or CFD contracts, hedging gives you the opportunity to keep the money even in very strong negative situations.
As for me, I’m working with FXG Trade for half a year – and it is the first place where my analyst asked me if I use this strategy in my trading experience. So far other brokers didn’t care for paying attention to my trading style. And the advice I’ve got here was very helpful, especially on the edge of crypto volatility this autumn.

Various kinds of currency clauses in contracts for deals are actively practiced. In this case, it is necessary not only to qualify a lawyer, but also to be highly competent in the functioning of the foreign exchange market, so that the reservation in the contract serves the good, rather than detrimental to your finances.

In any case, it is necessary to remember that currency risk insurance assumes a fixed transaction value and excludes the opportunity to earn on a favorable growth in the exchange rate – that’s what I learned from trading with FXGTrade. If you want to take a risk, you need to adequately analyze the current situation, make a forecast for the possibility of favorable or unfavorable growth.

If it is more important for you to carry out the transaction guaranteed without loss, it is reasonable to insure yourself.
FXGTrade commutiny gave me a lot of new instruments, and I’m starting to share them with you. If you trade with same broker – I would like to know what you think of FXG Trade and fxgtrade.com!

21 Comments

  1. I recently traded with FXG Trade, and even after that I can say that trading conditions are quite good, the attitude towards customers is at a good high level) I’ve made request for withdrawal two days ago and already got my money to my card.

  2. I have an experience in Forex trading for almost five years. Through this time I ve been with FXGTrade for six months since April 2017, and the broker working with me showed himself as a responsible partner. There were no problems with it and I expect my third withdrawal in a couple of hours. For me as for a novice trader, the biggest task is to find the right time to enter the market, because its almost 99% of sucessful order. And since I consider the trading as my future main source of income, its simply vital to learn. Thnx to broker for proper consultment.

  3. At first, when I just started trading, I did not understand much, and a looot of things were done intuitively. I didnt have enough confidence in my own knowledge or talent, as well as the knowledge itself 😀 Well, it worth saying that because of this approach, I certainly suffered losses. Intuitive trading does not allow you to see the exact trend picture on the chart . And quite often there was a trick when you simply begin to close the deal because you think that it’s starting a reversal, but in fact it’s just a trend correction. And after closing the deal, the price started moving in the right direction)) But theres no way to know all of this, even while so much money could be saved and earned !!!

  4. I work in shifts and it is a boring business. For almost half a year, I have been mastering exchange trade to make my life different. All this time I had an account at FXG Trade, so there is nothing to compare. But there were no serious problems in the process of work. By the way, if you are not in your country, it is very convenient that they have support phone numbers abroad. Sometimes it’s easier to get through Skype or from another ip-phone than to call their main numbers. It is fast to withdraw money; it comes to your card within an hour.

  5. I created an account on the FXG Trade site, the broker is certainly not a well-known one but I was attracted by trading conditions. And the speed of execution of orders is good. I’m not a fan, but if you want, you can scalp. Spreads… well, they are low enough, I judge by AUD and NZD. Managers hinted that they would soon add something to their tool set to make a change. Certainly, my profit is not big. With a $ 500 deposit, I usually get $ 30-40 dollars a week. However, if you count it as a percentage, then it’s not bad, especially when compared to bank deposits, for example. What I don’t like. Firs, it’s the Meta Trader terminal. Although it is the most popular, it’s not convenient for me. They need to offer other options, now many brokers do so. Or they can make a web terminal because it took me time to install the terminal in my macbook for example. Well, I’d also liked to have more tools for technical analysis.

  6. After the demo, I thought about opening a cent account, but I read reviews on the Internet and realized that a cent account is in fact the same demo))) So I started looking at brokers with real accounts. I finally chose FXGTrade from several brokers because they don’t only have good conditions (low entry threshold, quick withdrawal, normal execution) but also offer analytics. I have been trading here for three months; the monthly profit is about 20-30 bucks from a $ 300 deposit. I’m gradually learning. By the way, they don’t withdraw immediately, it takes an hour or two. In fact, I’m satisfied.

  7. I don’t know about the others, but it seems that I’m able to trade with FXG Trade and get some profit. Spreads here are low enough, so you’ll not lose the deposit if everything is done by a strategy and without big mistakes. Of course there is a bad luck, yes… To be honest, when I was down, I called the consultant and followed his advice. The first time he took me out with a little minus, for the second time I decided to wait on his advice and even closed my deals with profit. But of course the approach when you get a new (random) consultant every time is annoying…

  8. After Alpari, FXG Trade certainly seems to have very, very few services. You don’t have many possibilities here… But I came here mainly because of low spreads, so I got what I expected. Spreads are static, I judge by AUD, you can be calm and you don’t need to think about raising spreads. Quotes are also real market quotes, they don’t draw anything fake. A terminal is Meta Trader 4. I suits me, although I know that many people find it complicated. The data is updated quickly; there are no connection problems.

  9. I trained with no-deposit demos and realized that it becomes too easy at a certain point. Probably brokers specially make adjustments. One way or another, you can’t withdraw profit from your demo. In short, I opened an account on FXG Trade; I have been trading for a month now. It’s really harder, but spreads are static, you work on the same scheme that you’ve already tried in the demo. Orders are executed normally, quickly. Support is ok, too. You can usually reach them from the first time. Quotes are average for the market, I’ve checked them for USD and EUR and compared to other brokers. But alas, there are no bonuses on FXG Trade for small amounts as with other brokers…

  10. I came to FXGTrade because of very low spreads. You certainly feel this difference after Light Forex. Sure, Light Forex has a demo where it is easy to test various strategies. There is only real hardcore account here. So you need to be cautious. In general, I’m satisfied with conditions: spreads, quotes and execution speed. Their weak spot is technical support. I can’t reach them.

  11. I’m new on FXG Trade. Before I opened this account, I’d googled everything about his broker because it’s new on the market and you don’t know what to expect. I started with $250 and when I saw that everything was OK I increased to $1000 and keep my depo so. Deals are not cancelled, there’re no requotes, execution is prompt. Terminal froze a couple of times on my iPhone but after I reloaded it, it worked OK. It’s always OK on my computer so I think that there was a problem with my iPhone. I think I’ll buy a new one when I withdraw my profit.

  12. I talked to the technical support of many brokers and asked them about real conditions. It’s often a case that conditions written on the website aren’t true. I decided to stay on FXG Trade. The broker is quite young but trading conditions and spreads are favorable. I’ve been trading for two months without serious problems. Well, there are minor issues. Terminal froze a couple of times (they give Meta Trader) but everything was solved.

  13. My friend advised me to move from Teletrade to FXG Trade saying that even when Teletrade has bonuses and other features, spreads at FXG are lower and withdrawal is faster. I opened a second account here because the entrance level was low. Finally, I’ve stayed here. Conditions are really good, however there aren’t many tools. There are enough indicators in Meta Trader for beginners but I needed to add some more for my strategies. I think this broker gets 8 out of 10; you can work here.

  14. I can say that FXG Trade is a normal broker. I don’t know why someone complained here about requotes, I haven’t had any. I close 5-6 deals a day and I’ve been working for 3 months… so you can count it yourself. It happens sometimes after a big news dip that orders are processed a little slowly but it takes not more than 5 seconds. As for me, the only disadvantage of FXG Trade is that there’s not enough information on their website. But all technical aspects are OK.

  15. Finally, I added some funds and opened a silver account at FXG Trade. Their analysis is highly praised. In fact, I took the wider package to use more of it. It’s really interesting. There’s a lot of information. You can easily find everything you need. The forecasts are quite accurate. They are certainly not 100% true but quite close to that. And technically it is an average broker, to be honest. Everything works, orders are executed quickly but there aren’t any special features.

  16. I came to FXGTrade because of analysis and in general I can say that the reviews on the Internet didn’t lie. There aren’t so many special services and features or big bonuses and tournaments but the analysis is great. I based my strategy on it for the first time and used some technical analysis too. Now I almost don’t look at indicators, I trade according to forecasts. Profit is quite stable, though it’s not several times more than the deposit. Everything is ok with withdrawal, too. Money comes in an hour.

  17. Hello everybody! regarding the broker, you need to clearly understand that in no case it is impossible to work with brokers that you do not know anything about. otherwise you risk getting acquainted with scammers. By the way, FXGtrade scam this statement quite often met me on the expanses of the network. and it surprises me very much, well, it would seem how they come to this conclusion they generally worked with FXGtrade? I doubt it.

    1. Hello everyone! I do not quite agree with Stephen. I think that most of those who assert that the fxgtrade scammers, in fact, lost their money in trading on their platform. this happens, a couple of unsuccessful deals and all the money is lost. but it is easier to say fxg trade scam that way I lost money. than to admit that I just made a mistake in trading

  18. I was hesitating for a long time before I opened an account at FXGTrade. They don’t have demo and micro accounts at all. Then I read about kitchens and their connection with demo and micro accounts and about the fact that deals from demo and micro account never enter the market… In short, FXGTrade has a low entry threshold, it’s better to open an account with real money than to just to play and to lose time. Spreads are relatively low, at least for EUR/USD. Unfortunately, there are no webinars.

  19. I was working with the Forex Club for six months. But I noticed that the terminal was buggy when volatility was high and this led to losses. Now I moved to FXGTrade, there are no such problems. There are no disconnections, even when the market jumps. There are almost no requotes. I withdrew money three times. It came in a couple of hours probably. However, of course, there aren’t many services and packages at FXGTrade, there aren’t any demos and micro accounts neither.

  20. I want to talk about FXGTrade broker. When I registered, there were very few reviews about it for some reason. Now there are more of them. It’s clear that people have already realized that the company doesn’t spend money on advertising and it is profitable to work here. Some of the advantages are low spreads, normal quotes, which are average for the market, relatively fast withdraw and good support. Disadvantages are that each time you speak with a new manager, there aren’t many services and there’s no insurance for a small deposit.

Leave a Reply

Your email address will not be published. Required fields are marked *