Hedging is a trading strategy that traders use to manage market risks.

In this mode, an opposite (short) position is opened at the resistance level for an already open profitable trade (for example, long), usually of the same volume – thus, the trader 'protects' the profit from the Long from loss. Even if the market goes down – he will receive the same profit from the Short. In an ideal scenario – the trader can thus increase the overall profit: 'risk-free' take advantage of counter-trend movement, and then continue to profit from the main position.