At QuoMarkets, traders can hedge positions across all account types.
Hedging allows you to open both buy (long) and sell (short) positions on the same instrument, a powerful tool for managing risk and enhancing trading strategies.
We maintain a transparent approach to hedging margin to support informed and responsible trading decisions.
Hedging Margin for Standard, Raw, Zero, and Swap-Free Accounts
For all our account types, hedging is supported with a 0% margin requirement. This means that if a trader decides to open both a buy and a sell position of the same size (e.g., 1 lot each), the margin used will be 0.
We recognize the value of hedging as a risk management tool and strive to provide favorable conditions for our traders to employ this strategy effectively.
Hedging Margin for Limitless Account
In the case of the Limitless account, which is designed to offer unparalleled leverage for specific instruments, there is a distinct approach to hedging margin.
With Limitless, when a trader engages in hedging by opening both buy and sell positions for the same instrument, the margin calculation differs. In this scenario, the margin used will be calculated based on the full leverage available for the position that uses the highest leverage. This means that if the trader holds a hedged position, the margin used will reflect 100% of the leverage, considering the position with the highest leverage.
Why Is This Important?
- 0% margin for hedging in most account types lets you manage trades efficiently without added cost.
- In Limitless accounts, margin is still required for hedging to reflect the risks of extreme leverage.
- This structure ensures a fair and secure trading environment and prevents misuse of hedging to exploit margin rules.
Abuse Prevention and Responsible Trading
QuoMarkets monitors hedging activity to protect market integrity.
In case of hedging abuse (e.g., using the system to avoid real margin or risk), we may:
- Cancel swap-free or hedging privileges.
- Apply margin retroactively.
- Reclassify the account or restrict activity.
Hedging can be a powerful risk management and trading strategy. However, like any tool, it has the potential for misuse that could negatively impact the integrity of the market and traders’ experiences.
Our hedging margin policies are established with the clear intention of preventing abusive practices that could harm traders and the market ecosystem. By implementing measures that balance the flexibility to hedge with responsible risk management, we aim to foster an environment where all traders can execute their strategies with confidence.
We encourage traders to embrace these policies as part of their commitment to trading responsibly. By doing so, you contribute to a trading community built on trust, fairness, and integrity, allowing everyone to harness the potential of the markets in a secure and sustainable manner.