When you hold buy and sell positions in the same instrument simultaneously, the positions are considered hedged. The margin requirement for the hedged portion is generally lower than the margin required for an unhedged position.
When a position is fully hedged, the margin required for the hedged portion is 20% of the standard margin required to hold either the buy or sell position separately.
Account leverage: 1:500
Positions:
Buy: 1 lot of USDJPY
Sell: 1 lot of USDJPY
Required margin:
USD 200 × 20% = USD 40
The standard margin required for a single 1-lot USDJPY position is USD 200. As the buy and sell positions are fully hedged, only 20% of the standard margin is required.
Account leverage: 1:500
Positions:
Buy: 2 lots of USDJPY
Sell: 1 lot of USDJPY
Margin calculation:
Hedged portion (1 lot): USD 200 × 20% = USD 40
Unhedged portion (1 lot): USD 200 × 100% = USD 200
Total required margin:
USD 40 + USD 200 = USD 240
You can estimate the required margin using our Margin Calculator.
To calculate the margin for a hedged position:
Calculate the standard margin based on the applicable position size.
Apply 20% of the standard margin to the hedged portion.
Apply the full margin requirement to any remaining unhedged portion.
Please note:
If the buy and sell volumes are different, the 20% margin rate applies only to the volume that is hedged.
The remaining unhedged volume is subject to the full margin requirement.
The reduced hedged-margin requirement does not apply to certain instruments.
For the instruments listed below, 100% of the required margin must be maintained for both the buy and sell positions, even when the positions are fully hedged.
| Trading product | Applicable instruments |
|---|---|
| Cryptocurrency CFDs | GLMUSD, GLMJPY, DOTUSD, DOTJPY, MATUSD, MATJPY, KSMUSD, KSMJPY, ATMUSD, ATMJPY, CMPUSD, CMPJPY, ADAUSD, ADAJPY, UNIUSD, UNIJPY, XDCUSD, XDCJPY, XTZUSD, XTZJPY |
| FX | THBJPY, MXNJPY |
| Energy | XNGUSD |
| Stock CFDs | Zoom (MT5 only) |
The list of applicable instruments may be updated or changed without prior notice.
Assume that the standard margin required for a 1-lot position in an applicable instrument is USD 200.
Positions:
Buy: 1 lot
Sell: 1 lot
Because the instrument is subject to the full margin requirement, margin must be maintained for both positions:
Buy position: USD 200
Sell position: USD 200
Total required margin:
USD 200 + USD 200 = USD 400
Hedged positions may still be affected by market risks, including:
Widening spreads
Market volatility
Changes in liquidity
Rapid price movements
We strongly recommend maintaining sufficient available margin at all times when using hedging strategies.