Hedging is also called hedging. Hedging involves protecting funds from fluctuations in currency exchange rates. Hedging in forex trading is done by businesses and other parties to protect their funds from fluctuations in currency exchange rates.

Hedging is part of risk management. Hedging minimizes the risks caused by exchange rate fluctuations. Forex trading hedge is often used as a strategic risk control in trading, as well as a strategy to maximize profits in trading since forex trading is constantly dealing with the risk of loss due to changes in exchange rates that are not in line with traders' expectations.