What is Contract Size in Trading? Detailed Guide

This distinction is essential for risk management because smaller lot sizes allow traders to reduce their exposure while still participating in the market. By understanding how lot sizes impact your trades, you can make informed decisions that align with your financial goals and risk management plan. This lot size is typically used by experienced traders […]

What is hedging in Forex, and how does this strategy compensate for trading risk?

An investor seeks to mitigate downside risk and limit the impact of unfavorable changes on their portfolio’s value by implementing a hedging strategy but still allows room for growth or stability. Forex hedging is a risk management strategy used by traders to reduce or offset potential losses that may result from adverse movements in currency […]