Hedge Mode and Its Benefits | Earn From Crypto(lec-9)

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Hedge Mode allows traders to keep a Long and Short position simultaneously for the same trading pair. Hedging is usually used to minimize potential losses and protect the position, no matter the market conditions, but hedging does not provide 100% risk-free trading opportunities. It is a trading strategy used by futures traders to mitigate their risk exposure to the market. It involves opening both opposite positions, a long and a short, to profit from any market movement while minimizing potential losses.

Benefits:

Hedge mode allows users to limit their losses. As mentioned briefly above, a trader using hedge mode minimizes their losses and protects their positions. This strategy is a considerable advantage, especially in a market that is as fast-moving as crypto!