If you feel the need to hedge your position couldn’t you just reduce your initial position size instead, so that you don’t incur additional charges like commissions and spread?
If you’re a hedge fund and need to hedge your clients billion investment, sure that makes sense because you can’t reduce position size.
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If you feel the need to hedge your position couldn’t you just reduce your initial position size instead, so that you don’t incur additional charges like commissions and spread?
If you’re a hedge fund and need to hedge your clients billion investment, sure that makes sense because you can’t reduce position size.