Traders expect the market movement according to basic or technical analyzes or both in some cases, in addition to psychological analyzes of the rest of the traders in the market and studying their expected movements, but despite that, the market movement may make sudden changes violating studies and potential expectations, and then traders try to reduce the loss and take advantage of these changes In making profits as well. In order to achieve this, traders use some methods that enable them to put an end to the loss, compensate the capital and take advantage of the changes in the market movement to earn more. Among these methods and the most famous of these, we will mention to you the three most important strategies
1. Freezing: a process used to reduce or compensate for the losing deal and gain reversal points and it works By opening a deal similar to the basic deal in case the price reverses on you.
2. Hedging: It is the process of opening opposite deals in order to fix the profit and loss at a certain limit until the next movement is known and the losing deal is closed and profits are taken from the other.
3. Consolidation: It is the process of opening promotional deals in the same direction as the main profitable deal in the expectation of bringing more profits.