3 types of hedging in MCX

3 types of hedging in MCX

hedge means protection of capital.

So, when there is confusion,

we place trade in both directions till clarity with definite stop losses.

Generally traders know about hedging but not enough.

It is must to know

how & when to open hedging and how to close?

3 main type of hedging are-

1. Intra commodity hedging- hedging within same commodity

buy silver january and sell silver december with 300 pt sl.

this is safe.

2.intra sector- hedging within same sector but different commodities.

say buy goldm 28800 sl 28650

sell silvermini 56000 sl 56380

buy copper 406 sl 404 sell nickel 940sl 948 RISK-2000 IN BOTH

LEADMINI & ZINCMINI WITH 1/- SL

During day time book small tgt in both sides.

big tgt are possible frm 6to10pm in evening.

3.INTER SECTOR- hedgng in different sector .it is more risky

when it is clear that mkt is red.

sell gold and sell nickel

when mkt is clear green

buy gold and buy nickel

or buy silver & buy copper

when in confusion,

buy strong bullion

sell weak base metal (accoding to buyer/seller ratio)

IT becomes dangerous bcoz sometimes sl in both sides hit.

When comdex is less than +30 or -30pt

bullion goes up & base metal take breather.then vice versa.

When comdex is more than +50 or -50pt

all commodity goes bullish or bearish in the same time.CALLED ALLROUND BULLISHNESS/BEARISHNESS.

IN SUCH MKT,

buy in each dip & sell on each jump.@5.55/6.55/7.55/8.55/9.55pm.

or sell on each jump in all commodity but with small strict sl,book small profit very fast.

PANKAJ  JAIN

THE MONEYGURU

WWW.SPEEDEARNING.IN

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