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Hedging guidelines

Guidelines for hedging the same and correlated instruments

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Written by PipFarm
Updated yesterday

Is hedging allowed?

Yes. You can use hedging to manage risk or take multiple opportunities with the same instrument or correlated instruments in the same simulated trading account.

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

Type of hedging

Allowed

Hedging the same instrument in one account

Yes

Hedging correlated instruments in one account

Yes

Hedging the same instrument between different accounts

No

Hedging correlated instruments between different accounts

No

FAQ

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.​

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