Yes, FXTRADING.com allows both hedging and pair trading strategies with Index CFDs. Here's how you can implement these strategies:
Hedging Index CFDs:
You can enter both long and short positions on the same index simultaneously
This allows you to partially or fully hedge your exposure to market movements
Hedging can be useful to protect against short-term volatility while maintaining a longer-term position
Example: If you have a long position on US30, you can open a short position on the same index to hedge your risk
Pair Trading Index CFDs:
You can go long on one index while simultaneously going short on another related index
This creates a spread trade (or pairs trade) strategy that focuses on the relative performance between two indices
Pair trading can help reduce market directional risk while capitalizing on the relative strength or weakness between indices
Example: Going long on US500 while shorting TECH100 to trade on the relative performance between these indices
These strategies offer flexibility in how you approach the markets and can be valuable tools in your trading arsenal.