DislikedIf you are long on the trade and the market become choatic, that is, in an unfovorable or unclear situation , you enter equal lot size short until market returns to familiar territory. It costs you extra spread but your original trade remains intact and you can now sort it out on your own terms. I don't hedge frequently, but its a tool.
King.Ignored
some people use option contracts maintaining their position Delta neutral.
other investors will hedge on inverse correlating currencies, or on ETF
when trading large sums of money, you really begin to understand the aspect risks reduction via hedging.
simply taking a 500,000 dollar loss, might not be a good idea
AVT INVENIAM VIAM AVT FACIAM