1 ) Hedging System
- Hedging System is one of technique use to minimize the loss via ‘buying’ transaction or performing new transaction in the opposite direction of the former transaction (using the same lot) as it will aid in minimizing the loss. Subsequently, to the ‘lock’ transaction, we will perform new transaction to cover the loss. If it has reached 50 points, then we should perform lock in order to avoid bigger loss.
2 ) Switching
System- Switching system is one technique to change the transaction direction to the opposing direction. It is strongly advised to apply this when the transaction in the market is against our favour.
Example: Liquidate or Close ( execute ) the existing floating losses position and Create new positions
where the current market is heading to.
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