<p><strong>Hedged tender</strong> is a risk management strategy used in trading to offset potential losses by taking opposing positions in related markets. It's a way to protect your trading portfolio from significant drawdowns, ensuring that you maintain a balanced risk-reward ratio.</p>

<h2>How It Works</h2>

<p>A hedged tender involves taking two opposing positions in related financial instruments. Here's how it works:</p>

<ul>
  <li><strong>Long position</strong>: You buy an asset, expecting its price to rise. You make a profit if the price increases.</li>
  <li><strong>Short position</strong>: You sell an asset, expecting its price to fall. You make a profit if the price decreases.</li>
</ul>

<p>In a hedged tender, these two positions are taken simultaneously, but in opposite directions. For example, you might buy EUR/USD (going long) and sell EUR/GBP (going short) at the same time. If the EUR strengthens against the USD, you make a profit on your EUR/USD position. However, if the EUR weakens against the GBP, you make a profit on your EUR/GBP position. This way, you're hedged against significant losses in either scenario.</p>

<p>On <strong>MetaTrader 5</strong>, you can easily set up a hedged tender by opening two opposing positions in the <strong>Market Watch</strong> window. Simply right-click on the instrument, select <strong>Trade</strong>, and choose your position size and stop loss/take profit levels.</p>

<h2>Why It Matters for Traders</h2>

<p>Hedged tenders are a crucial risk management tool for traders. Here's why:</p>

<ul>
  <li><strong>Risk mitigation</strong>: By taking opposing positions, you're reducing your overall risk exposure. If one position moves against you, the other could potentially offset those losses.</li>
  <li><strong>Profit maximization</strong>: If both positions move in your favor, you can make a significant profit. Even if one position moves against you, your overall profit could still be substantial if the other position moves in your favor.</li>
  <li><strong>Market diversification</strong>: Hedged tenders allow you to diversify your trading portfolio by spreading your risk across related markets. This can help you maintain a balanced risk-reward ratio.</li>
</ul>

<h2>Example</h2>

<p>Let's say you have $10,000 in your trading account and you want to set up a hedged tender using EUR/USD and EUR/GBP. You decide to risk 2% of your account on each position:</p>

<table>
  <tr>
    <th>Instrument</th>
    <th>Position</th>
    <th>Position Size</th>
    <th>Stop Loss</th>
    <th>Take Profit</th>
  </tr>
  <tr>
    <td>EUR/USD</td>
    <td>Buy (Long)</td>
    <td>0.5 lots</td>
    <td>50 pips</td>
    <td>100 pips</td>
  </tr>
  <tr>
    <td>EUR/GBP</td>
    <td>Sell (Short)</td>
    <td>0.5 lots</td>
    <td>50 pips</td>
    <td>100 pips</td>
  </tr>
</table>

<p>In this scenario, if the EUR strengthens against the USD, you make a profit on your EUR/USD position. However, if the EUR weakens against the GBP, you make a profit on your EUR/GBP position. If both positions move in your favor, you could make a total profit of 200 pips (100 pips per position). If one position moves against you, your maximum loss would be 100 pips (50 pips per position), which is a 1% drawdown on your account.</p>

<h2>Key Takeaways</h2>

<ul>
  <li>Hedged tenders are a risk management strategy that involves taking opposing positions in related markets.</li>
  <li>They help mitigate risk by offsetting potential losses and maximizing profits.</li>
  <li>On MetaTrader 5, you can easily set up a hedged tender by opening two opposing positions in the Market Watch window.</li>
  <li>Hedged tenders allow you to diversify your trading portfolio and maintain a balanced risk-reward ratio.</li>
</ul>