Holding hedged positions does not remove the risk of a Margin Stop Out.
For example, you may hold both a long and a short position in the same instrument. Although this may reduce some directional market exposure, your account equity can still be affected by factors such as:
- Bid/Ask spread movements
- commissions
- swaps or overnight financing charges
- corporate actions
- other applicable trading charges
These costs can reduce your account equity even when positions are fully or partially hedged.
Fully hedged accounts may also be subject to specific liquidation conditions if account equity falls to the applicable threshold.
You should continue to monitor your account equity, Margin Level and trading costs even when your account is hedged.