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Is Hedge Order the Same as Stop Loss? A Forex Trading Guide

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A Hedge Order is a type of order in Forex trading that acts as a defense against sudden market drops. It is similar to a stop loss order in that it is used to protect your investments from unexpected market movements. A Hedge Order allows you to minimize your losses when the market is experiencing erratic movements and provides a cushion for your investments. A Hedge Order differs from a stop loss in that it is used to limit losses by opening another position, usually of an opposite direction, to reduce your exposure to the market movement.