Trading

What is Hedging?

1 min read • Updated 1 day ago

Hedging, also known as a locked position (locking), is a trading strategy that involves opening two opposite positions on the same instrument within the same trading account.

Simple Example:

  • You open a Buy 1 Lot XAUUSD (Gold) position.

  • Then, you open a Sell 1 Lot XAUUSD position in the same trading account.

As a result, you will have two opposite positions on the same trading instrument.

Important Notes:

Although hedging is permitted, hedging activities under certain conditions, including during high-impact economic news releases, may be subject to restrictions in accordance with TradingPRO's trading terms and conditions.

Please ensure that you understand the applicable trading rules before placing any trades, particularly before and during high-impact economic news release periods.

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