Full and partial hedge
Course context: This lesson belongs to a practical beginner curriculum for Pakistan.
| Position set | Net volume | Margin treatment |
|---|---|---|
| Buy 1.00 + Sell 1.00 EURUSD | 0.00 lot directional net | No margin held for fully hedged volume |
| Buy 1.00 + Sell 0.40 EURUSD | Long 0.60 lot net | Margin on unmatched 0.60 lot |
| Buy 0.30 + Sell 1.00 EURUSD | Short 0.70 lot net | Margin on unmatched 0.70 lot |
Why the result remains negative
If a long position is losing and an equal short is opened, subsequent price changes affect the two sides in opposite directions. The combined price result becomes broadly locked, but the second spread is paid and commission or swap may continue. The hedge does not repair the original entry.
The hidden risk when closing one side
Closing one side makes the other position unhedged, so full margin becomes required for the remaining volume. During HMR, the requirement can be much larger. Exness documents cases where an order cannot be closed because the account lacks the free margin needed for the side that would remain.
Hedge exit plan
| Decision | Pre-calculation |
|---|---|
| Close losing side first | Margin needed for remaining winner and the new directional risk |
| Close winning side first | Margin needed for remaining loser and distance to its SL |
| Close both | Expected spread/commission and execution difference on both tickets |
| Reduce both proportionally | New unmatched volume and remaining total cost |
Demo unhedging experiment
- Open equal 0.01-lot buy and sell orders on one major pair.
- Record combined P/L, spread and used margin.
- Calculate margin for one remaining 0.01-lot side.
- Close one ticket and observe used/free margin.
- Repeat with unequal volumes.
- Write an exit sequence before repeating; never improvise with live funds.
Official hedge rules
Exness hedged orders · Margin calculation
Questions from a first-time learner
Does a full hedge delete a floating loss?
No. It broadly locks price exposure while costs and existing P/L remain.
Why is hedged margin shown as zero?
Exness holds no margin for equal opposite volume on the same instrument.
Can I always close either side immediately?
Not necessarily. The remaining side may require more margin than the account has, especially during HMR.
Is opening the opposite order a substitute for an SL?
No. It creates a two-position management problem and additional costs.