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.