Hedged Margin

A hedged margin means holding an equal volume of trade on the buy and sell side of an active position simultaneously. This means that if a trader holds 0.5 lots on a long order on EURUSD and also holds 0.5 lots on a short order on EURUSD, the net gain/loss is neutralized until the trader closes one of the positions. This works well as a hedging strategy on well funded accounts. It is used when the trader is suddenly unsure of the outcome of a trade and has no time to utilize a proper hedge on another market.

By |2018-09-04T14:30:36+00:00September 4th, 2018|0 Comments

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