---
title: What does Hedging mean?
description: Hedging is a risk management method used by many traders to limit or counterbalance the probability of Loss when trading. Hedging represents opening a position in an opposite direction from an existing open position to reduce and/or eliminate a certain…
url: "https://ms.wmmarkets.com/knowledge-base/trading/what-does-hedging-mean/"
updated: "2024-10-09"
category: Trading
---

# What does Hedging mean?

Hedging is a risk management method used by many traders to limit or counterbalance the probability of Loss when trading. Hedging represents opening a position in an opposite direction from an existing open position to reduce and/or eliminate a certain degree of risk.