Hedging is a way to reduce risk by taking both sides of a trade at once. If your broker allows it, an easy way to hedge is just to initiate a long and a short position on the same pair. Advanced traders sometimes use two different pairs to make one hedge, but that can get very complicated.
For example, say you decide that you want to go short on the U.S. dollar and the Swiss franc (USD/CHF) because you see it sitting at the top of a recent price range. You decide to initiate your short. After setting up your short, you start thinking that the USD/CHF is looking a little strong, and you think that it might break upward and make your short an expensive one.
To do an advanced balancing act, you start looking at other USD pairs. You find that the euro to dollar pair (EUR/USD) tends to move inversely—opposite—to the USD/CHF. To complete your forex hedge, you go short on EUR/USD. The USD ends up breaking resistance and moves strongly against the CHF. Your short EUR trade becomes a winner, and your USD/CHF trade is a loser, but your risk is limited because they almost even out.