When a trader is in a sideways market, they may want to use hedging as a way to reduce their risk. This can be done by locking in a profit or by setting a limit on losses. By locking in a profit, the trader is saying that they are willing to give up some of their potential gains in order to limit their losses. By setting a limit on losses, the trader is saying that they are not willing to lose more than a certain amount of money. This allows them to maintain their position while taking less risk.