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Hedging guidelines

Guidelines for hedging

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Written by PipFarm
Updated today

Is hedging allowed?

Yes. You can hedge your positions in the same instrument or correlated instruments in the same simulated trading account.

However, hedging the same trading instruments between two or more accounts is prohibited. This is considered cheating and will result in an immediate and permanent disqualification.

Type of hedging

Allowed

Hedging positions in the same account

Yes

Hedging positions between different accounts

No

How is margin calculated for hedged positions?

When you hedge a long and short position, we combine the margin requirements for both positions. For example, if you are long 1 lot of EURUSD and short 1 lot of EURUSD, the margin required will be for 2 lots.​

Can I hedge correlated pairs?

We do not have a rule regarding hedging correlated positions, such as buying XAU/USD in one account and selling XAU/EUR in another. However, you should consider that such strategies are bad for our business model. If you have any concerns regarding your strategy, please contact our support team.

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