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Hedged Position Margin

How much margin a long and a short in the same instrument tie up — one leg, the net, or both in full, depending on the broker's rule.

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When an account holds a long and a short in the same instrument at the same time — possible in hedging mode, not in netting mode — the margin charged is a broker rule, not a market rule. Some firms charge margin on one leg only, some on the net exposure, some on both legs in full. Whichever applies is written in the contract specification or the client agreement. A reduced hedged margin makes the position look cheap to hold, but the offset is not the same as no risk. The spread is paid on both legs at entry and again at exit, financing is usually charged on each leg separately, and the discount can be withdrawn: if the broker raises requirements during a volatile session, both legs can start consuming full margin at the worst possible moment.

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Guide

How to Measure Risk Across All Your Open Positions

Risk per trade only describes one ticket. How to add up what your stops are worth, split the book into currencies, and read the margin figures the platform is already showing you.

Read the guide