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Hedge Trading

Can I hedge my trades?

Updated over 5 months ago

Can I Hedge My Trades?

Since there are numerous ways to hedge a trading account, the term "hedging" might be construed differently by different transactions.

However, we do not permit the following hedging approach out of simplicity:

🚫 No hedging between two accounts:
You cannot open trades that are exactly opposite one another on different accounts. Taking the example of opening one lot of purchase EURUSD.i position in one account and one lot of simultaneous sell order in the other account

The following types of hedging are permitted:

✅ Trading safe havens:
Financial instruments known as "safe-haven assets" have a tendency to gain in value or even hold their value during recessionary periods. Gold is one example of an asset that may be classified as both a safe haven and a hedge


✅ Pair trading allowed:
A hedging approach called pairs trading involves taking two positions. One on an asset whose price is rising, the other on an asset whose price is falling. Because one trade automatically reduces the risk of the other investment, pair trading produces an immediate hedge.

If you would like more information about hedging trades, please contact our knowledgeable Support Team via live chat.

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