Leveraged CFD and forex trading can lose money fast, and holding opposite positions does not change that.
What hedged margin means
Margin is the part of your funds the broker sets aside to keep a position open. It depends on volume, price and leverage (the ratio between position size and the margin required). See Leverage for how leverage is set.
Hedging in this context means holding a buy and a sell on the same instrument in the same trading account at the same time. The matched part of these positions is called hedged (or locked) volume.
Hedged margin is the margin charged on that matched volume. In the Exness account conditions, hedged margin is listed as 0%. This means fully matched opposite positions do not add margin on top of what was already required.
For any volume that is not matched by an opposite position, check how margin is calculated on the official Exness site or in your Personal Area before you rely on it.
How the calculation works, step by step
- You open a buy position. Margin is charged as usual: volume, contract size, price and your leverage decide the amount.
- You open a sell of the same volume on the same instrument. The volumes now match, so the hedged margin of 0% applies to the matched volume.
- You close one of the positions. The remaining position is no longer hedged and carries normal margin again.
Step 3 matters most. Closing one side can increase the margin required straight away. If your equity is low at that moment, you can move close to a margin call or stop out.
Use the calculator below to see the margin for the position before and after a hedge is opened or closed:
Fill in the empty fields to see the result.
Worked example on XAUUSD
The example uses gold (XAUUSD), with a contract size of 100 troy ounces per lot.
- You buy 0.01 lot of XAUUSD. Enter the volume, price and your leverage in the calculator above to see the margin.
- Later you sell 0.01 lot of XAUUSD in the same account. The positions are matched, so the hedged margin of 0% applies to them.
- Your floating result is now mostly fixed. Price moves change the buy and the sell in opposite directions.
- When you close the sell, the buy stands alone and its normal margin applies again. Run the calculator once more to see the figure.
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Why a hedge in one account still costs money
A hedge fixes your floating result. It does not remove trading costs:
| Cost | Why it still applies |
|---|---|
| Spread | You pay the spread when you open each position, and price moves against you by the spread on each side. See Spreads. |
| Commission | On Raw Spread (up to 3.50 USD each side per lot) and Zero (from 0.05 USD each side per lot), commission is charged per lot on each position. For XAUUSD: Raw Spread 3.5 USD, Zero 5.5 USD per lot per side. See Commissions. |
| Swap | Each overnight position can carry its own swap. Long and short swap rates usually differ, so they rarely cancel out. XAUUSD has a triple swap on Wednesday. See Swap fees. |
Clients registered from Pakistan are listed among the countries where swap-free status is assigned automatically (Algeria, Azerbaijan, Bahrain, Bangladesh, Brunei, Chad, Comoros, Côte d'Ivoire, Djibouti, Egypt, Indonesia, Iraq, Jordan, Kazakhstan, Kyrgyzstan, Kuwait, Lebanon, Libya, Maldives, Mauritania, Morocco, Niger, Oman, Pakistan, Qatar, Saudi Arabia, Senegal, Tajikistan, Tunisia, Turkiye, Turkmenistan, United Arab Emirates, Uzbekistan). Check your own account status in the Personal Area. Read Swap-free accounts for how the status works.
Risks experienced traders should check
- Margin jump on unlocking. Closing one side brings full margin back. Plan for it before you close.
- Margin call and stop out. These levels depend on the account: Standard Cent: margin call 60%, stop out 0%; Standard: margin call 60%, stop out 0%; Pro: margin call 30%, stop out 0%; Raw Spread: margin call 30%, stop out 0%; Zero: margin call 30%, stop out 0%. See Margin call and stop out.
- Spread widening. If spreads widen while you are hedged, your equity falls even though the price risk is locked.
- News periods. Orders opened from 15 minutes before to 90 seconds after high-impact news are subject to higher margin requirements. Whether this affects hedged positions is something to check on the official site.
- Platform mode. In MetaTrader 5, a hedging-mode account keeps opposite positions separate. A netting-mode account merges them into one net position. Check your account type in MetaTrader 5.
A hedge often only postpones a decision while costs keep building up. Read Risk management before using one.
Legal note for Pakistan
The SBP states that remitting foreign exchange to overseas forex, margin or CFD platforms is not allowed: per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)). Read Is Exness legal before you fund any account.
Frequent questions
Does Exness allow hedging?
Holding opposite positions on the same instrument is covered by the hedged margin condition, listed as 0%.
Is hedged margin really zero?
It is listed as 0% for matched volume. Volume that is not matched carries margin. Check the current rule in your Personal Area.
Does hedging protect me from losses?
No. It fixes your floating result. Spread, commission and swap keep reducing your equity.
What happens when I close one side?
The remaining position needs normal margin again. Use the margin calculator on this page to check the amount first.
Do I pay swap on both positions?
Each overnight position can carry its own swap unless your account has swap-free status. Check your status in the Personal Area.