The essence of hedging is actually very simple: from the moment you press that button, the profit is already locked in. Whether it goes up or down, you earn the same amount. The risk is exchanged for certainty.

But here’s the problem. Some people start using leverage for multi-fold hedging, and what happens? The profits are completely eaten up by leverage. To put it plainly, this isn’t a problem with hedging itself, but human greed causing trouble — wanting to lock in profits, seize the bottom during a decline, and also make money from shorting. If you want to have your cake and eat it too, you must bear the corresponding costs.

The market will never show mercy to anyone. Every trade is based on your own logic and decision-making. If you make a profit, you should understand why; if you lose, you should also understand why. Instead of blaming the tools, it’s better to learn to take responsibility for every step you take.