Hedging is a powerful way to protect your Forex trades from unexpected losses. For example, if you’re long EUR/USD and suspect short-term volatility, you could open a smaller short position in GBP/USD to offset potential risks. Another strategy is to trade correlated pairs inversely, like USD/JPY and USD/CHF, to minimize exposure. Always consider the cost of hedging, as swap fees or spreads can impact profitability. While hedging reduces risk, it also limits profit potential, so use it strategically during uncertain markets or major economic events. Hedging smartly can safeguard your portfolio while maintaining flexibility.