This article will go through the following points:
What is a hedged order?
A hedged order is a situation when the trader opens two opposing positions with the same volume of the same trading instrument.
The primary goal of a hedged order is to protect the trader from significant losses in a volatile market or to minimize potential losses while still allowing for potential earnings.
Does Orbex allow Hedging?
Yes, Orbex does allow Hedging as a trading strategy, except in cases of Swap Free Accounts as per our Trading Conditions.
What is the margin requirement on hedged positions?
Our margin requirement for hedged positions is Zero.
Can my account be stopped out, even when fully hedged?
Under normal market conditions, no, Stop Out will not happen, however, in certain market conditions, when sudden news is published or else when there is a high volatility or else low liquidity of the markets and there is a minimal amount of equity in the Trading Account, Stop Out may happen.