Hedged Trading Account
Hedged Trading Account
16 Dec 2021, 18:05
A hedged trading account, should not be subject to the margin level.
if you have “x” lots in a direction open, a hedge of the same “x” lots in the other direction should be permissible, irrelevant of the margin level; otherwise it is a lock-in doomed for failure; and defeats one of the purposes of a hedged account.
Replies
anwar_osman
26 Dec 2021, 16:39
( Updated at: 28 Dec 2021, 13:57 )
RE:
PanagiotisCharalampous said:
Hi anwar_osman,
The way the margin is calculated for hedged positions is decided by the broker. cTrader supports all options. Please talk to your broker.
Best Regards,
Panagiotis
Thank you for your input.
Please enlighten me, as to why there is a margin calculation for hedged positions of the very same instrument, being the very same quantity in the other direction (both ways, hedged, means that the balance would not adjust the account balance any further) and then again it is leveraged on a trader’s own funds.
By that I mean that I give the broker my money. The broker advances a leverage. Then when the trade is in action & price reverses a hedged trade (hedged account) should be perfectly allowed (it’s based on my funds that the broker holds) irrelevant of any calculation that is put into place to ensure that a trader looses his funds. They should not be a margin related calculation for equally sized hedged trades in the first instance, and any platform that allows for such restrictions is allowing unreasonable, unfair trade practices on its platform.
it is like saying, you give me 100, I hold it. When you want it back, I say no.
Please may I have a list of which brokers on the CTrader platform have a calculation method as a criteria for hedging an open position?
@anwar_osman
PanagiotisCharalampous
30 Dec 2021, 11:51
Hi anwar_osman,
It's better to address your questions to the broker, since it's them who decide how the margin will be calculated. Regarding the list, unfortunately we cannot know every broker's setup. You need to do your own research.
Best Regards,
Panagiotis
Join us on Telegram and Facebook
@PanagiotisCharalampous
PanagiotisCharalampous
17 Dec 2021, 08:27
Hi anwar_osman,
The way the margin is calculated for hedged positions is decided by the broker. cTrader supports all options. Please talk to your broker.
Best Regards,
Panagiotis
Join us on Telegram and Facebook
@PanagiotisCharalampous