Penelope Hughes

February 18, 2020

What is Hedging Strategy?

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This strategy is commonly known as Pairing and most often used along with corporations in binary options traders, investors and traditional stock-exchanges, as a means of protection and to minimize the associated risks.

This strategy is executed by placing both Call and Puts on the same asset at the same time. This assures that regardless of the direction of the asset value, the trade will generate a successful outcome. This provides the investor with profits of an “in the money” outcome. This is a great means of protecting yourself as an investor in whichever scenario is produced. It’s sort of an insurance method that prepares you for any scenario.

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