Is hedging or locking allowed on my account?
Yes. Hedging and locking are allowed on certain products and on PU Prime accounts that support holding buy and sell positions on the same product simultaneously, subject to applicable trading conditions. You can open an opposite position without closing your original trade, but this does not remove existing losses or ongoing trading costs.
What is the difference between hedging and locking?
| Method | What It Means |
| Hedging | Holding buy and sell positions on the same product at the same time. The volumes may differ. |
| Locking | Holding equal buy and sell volumes on the same product, such as a 1-lot buy and a 1-lot sell. |
Example: Hedging a gold position
Suppose you hold a 1 lot buy position on XAUUSD and are concerned that Gold prices may fall:
- Open a 0.50 lot sell: Partially offsets your exposure to price movements.
- Open a 1 lot sell: Creates equal buy and sell volumes, commonly called a lock position.
Does locking freeze my profit or loss?
Equal opposite positions largely offset the effect of market price movements, but the combined result is not guaranteed to remain fixed.
- Existing losses remain: Locking does not recover a loss already incurred.
- Spread changes: Changes in the difference between Bid and Ask prices can affect the combined floating result.
- Ongoing charges: Swap and applicable commissions affect the overall result.
- Closing one side: Removing one position leaves the remaining position exposed to market movements.
Do I need additional margin to lock a position?
The margin required depends on the product’s hedged margin settings and your account’s existing exposure.
- Reduced or zero hedged margin: Some products may require reduced or no margin for equal opposite positions.
- Unequal volumes: The unmatched portion may still require margin.
- Order acceptance: The platform checks the applicable margin requirements and execution conditions before opening the opposite position.
Do not assume that locking always requires full additional margin or always reduces used margin to zero. Check the product’s Specification in MetaTrader 4 or MetaTrader 5.
What costs apply to hedged or locked positions?
Each position remains subject to its applicable trading costs:
- Spread: Opening the opposite position creates another trade with its own spread cost.
- Swap: Each eligible position held overnight may receive its applicable long or short swap charge or credit. These do not necessarily cancel out.
- Commission: Each position is subject to commission where your account type charges it.
A locked position can therefore continue to incur costs even when its exposure to market price movements is largely offset.
What should I check before hedging or locking?
- Position volumes: Whether you intend to offset part or all of your exposure.
- Margin requirements: The product’s hedged margin rules and your available funds.
- Trading costs: The spread, long and short swap rates and applicable commissions.
Hedging or locking does not guarantee protection from losses or stop-out. Your account remains subject to its applicable margin and stop-out requirements.
