Hedging means taking an offsetting position to reduce risk on an existing trade, usually lowering potential loss and potential gain together.
Understanding hedging helps you read prices and manage risk on any prediction market platform.
Example
Holding YES shares bought at 30¢, you later buy some NO shares at 60¢ to lock in a smaller, more certain result.
Why it matters
Knowing how hedging works lets you compare markets and avoid costly mistakes when trading.
Practical tip
Before trading, check how hedging shows up on the specific platform you use, since interfaces and terminology can vary slightly between exchanges. Reviewing a few live markets is a quick way to see hedging in action before risking real funds.