Thursday, December 4, 2014

Will Forex Hedged Position be stopout?

You can hedge your positions, but be aware that your account equity must meet the margin requirements to be able to close one or more of the hedged positions. Fully Hedged accounts are not immune to Stop Out. If your account equity reaches Zero level or below for any reason (Such as wide spread on news or swap deduction), your open positions will be closed automatically. Broker has the right to close all or part of the hedged positions in order to avoid the possible risk of negative balance due to wide spreads; this may apply on Accounts maintaining big amount of hedged positions with very small equity.

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