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hedging in FORFX accounts

hedging in FORFX accounts

Last published :
August 13, 2024
Is hedging allowed in FORFX accounts?

Hedging refers to placing trades in different directions on a single asset or on assets with a correlation. This strategy is typically used to profit from price changes without experiencing risk or to reduce risk in the market. The use of this strategy is generally allowed but with the following restrictions under specific conditions:

During Economic News Announcements:Hedging (within one account or across multiple trading accounts) is prohibited from 30 minutes before until 5 minutes after the conclusion of high-impact forex news events, as well as from 30 minutes before until 30 minutes after major high-impact forex speeches. Using this strategy during these times is forbidden and will result in the closure of the user's account.

Hedging Across Multiple Accounts:Opening multiple accounts and placing trades in different directions on a single asset or correlated assets is prohibited. This strategy can lead to losses for some and contradicts the real market rules.

Hedging Between Funded Accounts:As mentioned in the previous point, hedging between funded accounts of a user is prohibited, regardless of the traded symbols and trade volumes. Using this strategy will result in the closure of the user's account.