The purpose of hedging is to eliminate uncertainty, not to profit. A participant opens a second position whose result moves opposite to the main one: a loss on one is offset by a gain on the other, and the result becomes predictable regardless of market direction.
A classic example is currency hedging. A company with a foreign currency obligation enters into a forward contract and locks in the future purchase rate. Subsequent currency movements no longer affect its plans.
The price of certainty works both ways. Hedging removes not only risk but also the possibility of gain: with favorable price movement, the result will be the same as with unfavorable movement. Additionally, hedging instruments cost money — premiums, commissions, and margin requirements.
For a private investor, available methods are usually simpler than derivatives: distributing savings between currencies proportional to future expenses, matching investment horizons to goals, and maintaining a share of protective assets in the portfolio. Professional risk management using derivatives requires appropriate qualification, and delegating this task to a manager does not itself eliminate costs.