Hedging Capabilities

To simultaneously hold long and short positions in the same currency pair, the dbFX Long-Short Position Management Tool is perfect for you. The feature will enable you to have:

• The ability to execute multiple strategies at the same time.
• Flexible management of your margin requirements.
• Full control over which positions you close.

How can I enable my account for hedging?

To utilise the dbFX Long-Short Position Management Tool, please download an application form and fax it to us once completed. A list of toll-free fax numbers can be found on our contact us page, as well as telephone numbers should you have any questions.

What is the margin requirement for maintaining a hedged position?

The first position will require 100% of the standard margin requirement assigned to your account. When an offset position is executed, each position will require 50% of the customary margin requirement. Conversely, if you had closed the original position, you would have no margin requirement.
The Long-Short Position Management Tool will enable you to manage your margin requirements on all trades. For example, if you are holding a long-term losing position which is close to a margin call, you can hedge your losses, while maintaining the position by opening an opposite trade. You may now be under the levels subject to a margin close out. When you close the second trade, the original trade with your original market view will still stand.

How can I open a hedged position?

Positions are opened in the standard method with a market order. All open positions will be displayed in the Open Positions blotter. For example, if you open a sell of GBP/USD and a buy of GBP/USD, the blotter will now show two open positions. These two trades will be independent of each other and will not be netted out.

How does the tool affect rollover?

All open positions are subject to daily rollover rates, and will be credited or debited accordingly. Be aware that if you leave the positions open indefinitely, the rollovers may significantly reduce the balance in your account.