@seb-0 what most people discredit about heding the same instrument Is that you can basicly cut your exposure any time you want and then fully or partially Open up exposure (the hedge) to average price. Its a benifit.
It also gives back the margin fee when hedging CFDs, meaning once you enter the hedge, you usually have your free margin back, which can be a Advantage in my eyes, ofcurse the equity is still fixed at a loss if the hedge was made in a loss, but the margin cost is zero.
In my eyes hedging is better then martingale, grid and all the other averaging strategys.
Hedging seems to be more linear and controlable risk.
So it doesnt have the same effect as just closing the first trade in my eyes, it gives you more options to manage and average positions, but ofcurse that comes with more risk too.
I would say it can't be Compared with taking a stop loss or closing the first position.
We can argue that a SL might be less risk, simpler and more controlable risk, but we cant Compared it to hedging, becouse when we hedge, we have the goal to average price, when we use a SL we want to control risk and Exit a Position at a certin price.
