On an account configured for hedging at FXTRADING.com, the matched volume of opposite positions in the same instrument has zero hedged margin. Unmatched volume still requires margin. This does not mean that the entire account needs no margin or that trading costs and risks disappear.
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
Reduce net price exposure while the opposite positions remain matched, without guaranteeing a profit
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 hedged margin applies to the matched volume of opposite positions in the same instrument on the same hedging account. It does not apply to unmatched volume or automatically to positions in different instruments or accounts.
Separate positions: If a hedging account accepts the order, the positions are recorded separately. They can still close through your instruction, Stop Loss, Take Profit, stop-out, liquidation, an applicable expiry or adjustment, or product and platform rules.
Separate management: Supported hedging accounts generally allow each position to be closed separately, subject to quotes, liquidity, execution, and account controls. A favourable price or execution is not guaranteed.
What happens to margin when I close one side of a hedge?
Closing one side of a full hedge leaves the other side uncovered. For example, after closing the sell side of a 1-lot buy and 1-lot sell in the same instrument, the remaining 1-lot buy requires margin immediately under the leverage and margin rules applicable at that time. This is margin on the position left open, not a newly opened position. A partial closure can also leave some volume uncovered.
The same principle applies during a designated news window, from 15 minutes before to 15 minutes after release. If you close one side then, the remaining uncovered volume uses the margin and leverage applicable then. A lower leverage limit can require more margin. The temporary policy's account and entity exclusions, affected products and lower limits still apply; this does not place every product at 1:200.
An increase in used margin can reduce free margin and margin level even though you closed a position. If the account reaches its applicable stop-out level, positions may be closed automatically. A reduction in free margin alone does not establish that stop-out must occur. Zero hedged margin does not remove spreads, swaps, commissions, price-gap or stop-out risk. Review the remaining exposure and applicable conditions before submitting a closure; after execution, check the account's displayed margin figures.
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 availability depends on the current account mode, platform and build, server, legal entity, and product. Verify the specific account before placing the second position.
MT4: Separate buy and sell positions may be supported when hedging is enabled for the specific account and server. Check the current platform controls.
MT5: It supports both hedging and netting systems. The current account and server configuration determines which applies; do not assume the account is in hedging mode.
FXTRADING.com Trading App: It may expose hedging functions for the current account when supported. Interface, features, connectivity, and execution can vary by app, device, and configuration.
Important Considerations
While hedging is allowed and can be beneficial, please keep in mind:
Opening and closing each position may incur the spread and any applicable commission or cost under the account and symbol.
Swap or overnight amounts can apply independently to each side that remains open; their sign and rate may differ. Check the symbol specification and account history.
Equal opposite volume reduces net price exposure while both sides remain matched, but it does not freeze a profit or remove risk. Spreads, swaps, commissions, currency conversion, unequal specifications, price gaps, stop-out, and one-side closure or execution remain relevant.
A partial hedge leaves unmatched exposure. Margin depends on the current margin method, account equity, positions, symbol rules, and platform calculation, rather than a universal net-exposure formula.
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.