Hedging is normally a strategy to protect or minimize your potential downside. Hedging is normally a short term strategy where you are concerned that price could move against your current open position and you are looking for a way to minimize your downside. When hedging you are holding both a long and a short trade on the same Forex pair. For example; you may be holding a long trade on the EURUSD whilst at the same time also holding the same amount in a short trade on the EURUSD. This will hedge your position. You will not lose any money, but you will also not make any.