Yes, we allow hedging on our platform. Also, there is no margin requirement if it is a perfect hedge.
What is Hedging?
Hedging is a trading strategy that involves opening positions in opposite directions on the same instrument. For example, you might have both a buy (long) and sell (short) position on EUR/USD simultaneously. This strategy is often used to:
Manage risk in volatile market conditions
Lock in profits on existing positions
Create opportunities for scalping during market fluctuations
Protect against adverse price movements
Hedging Benefits at FXTRADING.com
When trading with FXTRADING.com, you can enjoy several benefits related to hedging:
Perfect Hedge Advantage
A perfect hedge occurs when you have equal volume positions in opposite directions on the same instrument. For example, 1 lot buy and 1 lot sell on EUR/USD. In this case:
Zero Additional Margin Required: No extra margin is locked when you create a perfect hedge
Positions Remain Open: Both positions stay active until you decide to close either one
Independent Management: You can close each position separately when market conditions are favorable
Flexible Hedging Options
FXTRADING.com supports various hedging approaches:
Direct Hedging: Opening opposite positions on the same instrument
Correlation Hedging: Using correlated currency pairs to offset risk
Cross-Instrument Hedging: Hedging between different but related financial instruments
Platform Compatibility
Hedging is fully supported across our trading platforms:
MT4: Complete hedging functionality available
MT5: Full hedging mode enabled (not the netting mode used by some brokers)
FXTRADING.com Trading App: Seamless hedging capabilities on mobile
Important Considerations
While hedging is allowed and can be beneficial, please keep in mind:
Hedged positions still incur spread costs when opening and closing
Swap/overnight fees apply to both sides of hedged positions
Perfect hedges protect from further market movement but may result in paying fees on both positions
Partial hedges (different volumes in opposite directions) will still require margin for the net exposure
Hedging on desktop and mobile
Where hedging is enabled for the account, MT4 and MT5 can keep buy and sell positions in the same instrument open independently on supported desktop and mobile applications. An equal opposite volume is a full hedge; a smaller opposite volume is a partial hedge. Check the account mode and current platform controls before placing the second position, because a netting account combines exposure instead of keeping separate positions.