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# Hedging

Hedging orders are similar to Bracket Orders. With hedging order, a child order is submitted only on execution of the parent. Orders can be hedged by an attached forex trade, Beta hedge, or Pair Trade, just as in TWS.

For an example of a forex hedge, when buying a contract on a currency other than your base, you can attach an FX order to convert base currency to the currency of the contract to cover the cost of the trade thanks to the TWS API's Attaching Orders mechanism.

More on [Hedging Orders in TWS](https://www.interactivebrokers.com/en/software/tws/attachedordertop.htm)

Note that in some cases it will be necessary to include a small delay of 50 ms or less after placing the parent order for processing, before placing the child order. Otherwise the error "10006: Missing parent order" will be triggered.

#### Python

```python
 @staticmethod
def MarketFHedge(parentOrderId:int, action:str):
    #FX Hedge orders can only have a quantity of 0
    order = OrderSamples.MarketOrder(action, 0)
    order.parentId = parentOrderId
    order.hedgeType = "F"
    return order

# Parent order on a contract which currency differs from your base currency
parent = OrderSamples.LimitOrder("BUY", 100, 10)
parent.orderId = self.nextOrderId()
parent.transmit = False

# Hedge on the currency conversion
hedge = OrderSamples.MarketFHedge(parent.orderId, "BUY")

# Place the parent first...
self.placeOrder(parent.orderId, ContractSamples.EuropeanStock(), parent)

# Then the hedge order
self.placeOrder(self.nextOrderId(), ContractSamples.EurGbpFx(), hedge)
```

#### Java

```java
public static Order MarketFHedge(int parentOrderId, String action) {
    //FX Hedge orders can only have a quantity of 0
    Order order = MarketOrder(action, Decimal.ZERO);
    order.parentId(parentOrderId);
    order.hedgeType("F");
    return order;
}

//Parent order on a contract which currency differs from your base currency
Order parent = OrderSamples.LimitOrder("BUY", Decimal.ONE_HUNDRED, 10);
parent.orderId(nextOrderId++);
parent.transmit(false);
//Hedge on the currency conversion
Order hedge = OrderSamples.MarketFHedge(parent.orderId(), "BUY");
//Place the parent first...
client.placeOrder(parent.orderId(), ContractSamples.EuropeanStock(), parent);
//Then the hedge order
client.placeOrder(nextOrderId++, ContractSamples.EurGbpFx(), hedge);
```

#### C++

```cpp
Order OrderSamples::MarketFHedge(int parentOrderId, std::string action){
    //FX Hedge orders can only have a quantity of 0
    Order order = MarketOrder(action, 0);
    order.parentId = parentOrderId;
    order.hedgeType = "F";
    return order;
}

//Parent order on a contract which currency differs from your base currency
Order parent = OrderSamples::LimitOrder("BUY", stringToDecimal("100"), 10);
parent.orderId = m_orderId++;
parent.transmit = false;

//Hedge on the currency conversion
Order hedge = OrderSamples::MarketFHedge(parent.orderId, "BUY");

//Place the parent first...
m_pClient->placeOrder(parent.orderId, ContractSamples::EuropeanStock(), parent);

//Then the hedge order
m_pClient->placeOrder(m_orderId++, ContractSamples::EurGbpFx(), hedge);
```

#### C\#

```csharp
 public static Order MarketFHedge(int parentOrderId, string action)
{
    //FX Hedge orders can only have a quantity of 0
    Order order = MarketOrder(action, 0);
    order.ParentId = parentOrderId;
    orderHedgeType = "F";
    return order;
 }

 //Parent order on a contract which currency differs from your base currency
Order parent = OrderSamples.LimitOrder("BUY", 100, 10);
parent.OrderId = nextOrderId++;
parent.Transmit = false;

 //Hedge on the currency conversion
Order hedge = OrderSamples.MarketFHedge(parent.OrderId, "BUY");

//Place the parent first...
client.placeOrder(parent.OrderId, ContractSamples.EuropeanStock(), parent);

//Then the hedge order
client.placeOrder(nextOrderId++, ContractSamples.EurGbpFx(), hedge);
```

#### VB.NET

```vbnet
Public Shared Function MarketFHedge(parentOrderId As Integer, action As String) As Order
    'FX Hedge orders can only have a quantity of 0
    Dim Order As Order = MarketOrder(action, 0)
    Order.ParentId = parentOrderId
    Order.HedgeType = "F"
    Return Order
End Function

'Parent order on a contract which currency differs from your base currency
Dim parent As Order = OrderSamples.LimitOrder("BUY", 100, 10)
parent.OrderId = increment(nextOrderId)
parent.Transmit = False

'Hedge on the currency conversion
Dim hedge As Order = OrderSamples.MarketFHedge(parent.OrderId, "BUY")

'Place the parent first...
client.placeOrder(parent.OrderId, ContractSamples.EuropeanStock(), parent)

'Then the hedge order
client.placeOrder(increment(increment(nextOrderId)), ContractSamples.EurGbpFx(), hedge)
```