Opposite trades with equal lot sizes ended up reducing your capital

[Capitation]

It's not that you're hedging, but that you're not doing it correctly. I'm not sure how much experience you have in general, but I feel you should learn/practice some more and try it again after you have a better understanding of market swings and timing.

 

[skiascope]

Hedging is difficult and you better don’t do it until you have a lot of money for losing which won’t hurt much. Experiments also work when you have some experience.

 

[Sacralgia]

It happens because of hedging. You must avoid doing it from now on.

 

[Polakandil]

Some traders maybe use correlation trading pair as hedging position, just like basket trading strategy that utilizes correlation between pair, in a simple example, trade EURUSD and EURJPY, then GBPUSD and GBPJPY, although not always these trading pair usually has positive correlation.

 

[Zooscopy]

That was a failed attempt at hedging. Taking up two opposite trades in the same currency pair is a strategy used by traders to reduce the risk. I will recommend you to learn more and work on your trading plan.

 

[Paramedian]

Your downfall can be attributed to your hedging strategy. Focus on what went wrong and correct it. You'll figure out a way to deal with it eventually.

 

[Whiskerine]

Hedging is actually a good way to manage the risk but you couldn’t execute it properly. If you were actually trying to hedge then you need to learn more. And if it was by accident then you should actually make a trading plan and stick to it.

 

[GlenWest]

The negative balance resulted in loss of money making Hedging very risky. The losing lot holds the negative balance from the other lots which results in you losing even more than normal.

 

[Bumblebee]

It’s nothing unusual. This happens when ‘hedging’ is practised in forex trading. Moreover, forex is very volatile, so it might not always move as per your expectations and analysis.

 

[Curtate]

Even if you have equal lot sizes, hedging can often be destructive and cause you to lose money rather than bring you a profit.

 

[Retropulssion]

Hedging is not as simple as it appears. It's not easy to look at the market from two different perspectives.