Hedging orders, known as offset orders, are taking opposite positions on the same instrument.

For example, you buy 1 lot of EURUSD and sell 1 lot of EURUSD.

Note: If the currency footnotes are different, the order is not considered hedge.

1. The balance of the transaction contract for canceled orders

There is no balance of contracts for hedge orders from Standard Cent, Standard, Pro, Raw Spread, and Zero accounts.

2. Full vs. Partial Hedge

Let’s understand it with an example.

If you buy 5 lots of EURUSD and sell 5 lots of EURUSD, the trading volume is completely coincident and is considered fully hedged.

Buying 5 lots of EURUSD and selling 3 lots of EURUSD is considered partially hedged.

There will be no trade contract balance for the matched trading volume of 3 lots, and the trade contract balance for buy orders of the remaining 2 lots will remain.

3. Liquidation of hedge orders

If you choose to close a hedged order, the opposite order is automatically placed in an unhedged position.

Therefore, the balance of the trading contract remains for the remaining orders.

Let’s take an example.

Let’s say you buy 3 lots of EURUSD and sell 3 lots of EURUSD and your order is completely hedged. There is no balance of the transaction contract.

If you choose to close the buy 3 lots of EURUSD, the sell order of the remaining 3 lots will be an unhedged order and will hold the balance of the trading contract for a total of 3 lots.

*If you hedge or partially close order for Bitcoin Cash, Ethereum, Litecoin, or Ripple, the volume of the liquidated position must be at least 0.1 lots (10 lots for Ripple).

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