Hedging is a trading method in which you trade the same product with the same volume but with 2 opposite orders.

For example, if you buy 1 lot of gold and sell 1 lot of gold, that is hedging 1 lot. Or you buy 1 lot of EURUSD and sell 0.7 lots of EURUSD, it is hedging 0.7 lots.

Basically, hedging is meant to avoid risks when trading at a certain point in time and sometimes must be used by traders.

This method is as follows:

1. Choose some currency pairs with high-interest rate difference (eg AUDJPY is BUYING at the rate of 2.9% / year, NZDJPY is BUYING, the interest is 3.55% / year). Here choose for example AUDJPY pair (in fact choose this pair with as much positive interest as possible)

2. Open 2 accounts, 1 at Broker with swap fee, 1 at Broker WITH NO overnight fee

3. The party that does NOT collect the swap fee will place a SELL order (sell order will be charged overnight if the Broker charges fees, so you must choose the side that does not charge the fee to trade).

4. The FOLLOWER place a BUY order to receive 3.55% 1 year (if not using leverage is 3.55%, if using only 1:10, it would be 35.5% 1 year, the profit is quite high)

5. The stop loss of one order is to take profit of the other and vice versa, to ensure the safety of both sides. One side is cut orders, the other side will automatically cut orders. There are different types of EA (Expert Advisor) to help you with this.

With a leverage of 1: 100 or more, you will earn excellent interest with this method, and there is virtually NO RISK.


High-interest rate pairs often trade in contrast to the JPY, because JPY has very low-interest rates.

It is advisable to choose a broker with a high reputation, as this method needs to maintain orders for quite a long time.

In addition, you should choose a pair with little volatility to avoid the risk of account fire and pay more money at the beginning. Although there is no risk, the withdrawal will take more time.