The Hedging Margin

At our trading platform, we provide traders with the flexibility to hedge their positions across all account types. Hedging allows traders to simultaneously hold both long (buy) and short (sell) positions on the same instrument, potentially mitigating risk and enhancing their trading strategies. We offer a clear and transparent approach to hedging margins that ensures our clients can make informed decisions based on their trading goals. 

Hedging Margin for Standard, Raw, Swap Free and Zero accounts: For all our account types, including standard, raw, zero, and swap-free, hedging is supported with a 0% margin requirement. This means that if a trader decides to open both a buy and a sell position of the same size (e.g., 1 lot each), the margin used will be 0. We recognize the value of hedging as a risk management tool and strive to provide favorable conditions for our traders to employ this strategy effectively. 

Hedging Margin for Unlimited Limitless Account: In the case of the Unlimited Leverage account, which is designed to offer unparalleled leverage for specific instruments, there is a distinct approach to hedging margin. With Unlimited Leverage, when a trader engages in hedging by opening both buy and sell positions for the same instrument, the margin calculation differs. In this scenario, the margin used will be calculated based on the full leverage available for the position that uses the highest leverage. This means that if the trader holds a hedged position, the margin used will reflect 100% of the leverage, considering the position with the highest leverage. 

Key Takeaways: 

  • Hedging is permitted across all our account types, allowing traders to employ versatile strategies for risk management and profit potential. 
  • For standard leverage accounts, the margin requirement for hedging is 0%, ensuring that traders can hedge without additional margin impact. 
  • In the Unlimited Leverage account, hedging involves margin calculations based on the position with the highest leverage. The margin used for hedging will reflect the full leverage available.  

We believe in providing traders with transparent and fair conditions for their trading activities. Our approach to hedging margin ensures that traders can make the most of their strategies, whether they’re aiming for risk reduction or capitalizing on market fluctuations. It’s essential to understand the specifics of hedging margins to make informed trading decisions that align with individual strategies and goals. 

Guarding Against Abusive Practices: Hedging Margin Explained 

In our commitment to maintaining a fair and responsible trading environment, we have implemented a thoughtful approach to hedging margin across our account offerings. This approach is designed to prevent the misuse of our trading products while promoting a secure and balanced trading experience for all participants. 

Balancing Flexibility with Responsibility: Hedging, the practice of holding both long and short positions on the same instrument simultaneously, can be a powerful risk management and trading strategy. However, like any tool, it has the potential for misuse that could negatively impact the integrity of the market and traders’ experiences. 

Preventing Abusive Conduct: Our hedging margin policies are established with the clear intention of preventing abusive practices that could harm traders and the market ecosystem. By implementing measures that balance the flexibility to hedge with responsible risk management, we aim to foster an environment where all traders can execute their strategies with confidence. 

Your Responsible Trading Journey: Understanding the intricacies of our hedging margin policies is essential for making informed and responsible trading decisions. We encourage traders to embrace these policies as part of their commitment to trading responsibly. By doing so, you contribute to a trading community built on trust, fairness, and integrity, allowing everyone to harness the potential of the markets in a secure and sustainable manner.

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