{"id":10806,"date":"2025-01-29T12:17:24","date_gmt":"2025-01-29T12:17:24","guid":{"rendered":"https:\/\/unitedpips.com\/knowledgebase\/resources\/topic-index\/learn-forex\/what-is-a-hedged-margin\/"},"modified":"2025-01-29T12:18:22","modified_gmt":"2025-01-29T12:18:22","slug":"what-is-a-hedged-margin","status":"publish","type":"docs","link":"https:\/\/unitedpips.com\/knowledgebase\/docs\/topic-index\/learn-forex\/what-is-a-hedged-margin\/","title":{"rendered":"What Is a Hedged Margin?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"10806\" class=\"elementor elementor-10806\" data-elementor-post-type=\"docs\">\n\t\t\t\t<div class=\"elementor-element elementor-element-66c1a81 e-flex e-con-boxed e-con e-parent\" data-id=\"66c1a81\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-19e7101 elementor-widget elementor-widget-text-editor\" data-id=\"19e7101\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Hedged margin<\/strong> is the <strong>capital required to maintain a locked (hedged) position<\/strong> in forex trading. It ensures that both <strong>buy and sell trades on the same currency pair remain open<\/strong> without requiring full margin for both positions.<\/p><h3><strong>How Hedged Margin Works<\/strong><\/h3><p>If the <strong>hedged margin is 50%<\/strong>, the broker only requires margin for <strong>one side<\/strong> of the trade.<\/p><h4><strong>Example:<\/strong><\/h4><ul><li><strong>Hedged Margin: 50%<\/strong><\/li><li><strong>1 lot buy on EUR\/USD = $100 margin<\/strong><\/li><li><strong>1 lot sell on EUR\/USD = $100 margin<\/strong><\/li><li><strong>Total margin for both positions = $100 (not $200)<\/strong><\/li><\/ul><p>Since the positions offset each other, the margin requirement <strong>remains the same<\/strong> rather than doubling. This allows traders to <strong>reduce margin usage while keeping both positions open<\/strong>.<\/p><h3><strong>Benefits of Hedged Margin:<\/strong><\/h3><p>\u2714 Lowers margin requirements for hedged trades.<br \/>\u2714 Provides flexibility in managing risk.<br \/>\u2714 Helps traders hold positions longer without additional margin pressure.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Hedged margin is the capital required to maintain a locked (hedged) position in forex trading. It ensures that both buy and sell trades on the same currency pair remain open without requiring full margin for both positions. How Hedged Margin Works If the hedged margin is 50%, the broker only requires margin for one side [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":9546,"menu_order":30,"comment_status":"open","ping_status":"closed","template":"","doc_tag":[],"class_list":["post-10806","docs","type-docs","status-publish","hentry","no-post-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/10806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/comments?post=10806"}],"version-history":[{"count":4,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/10806\/revisions"}],"predecessor-version":[{"id":10810,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/10806\/revisions\/10810"}],"up":[{"embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/9546"}],"wp:attachment":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/media?parent=10806"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/doc_tag?post=10806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}