This is possible on Vantage trading accounts and platforms that support hedging.

How does a fully hedged position work?

Although their directional market exposure is largely offset, the positions remain subject to trading costs and applicable account conditions.

Is locking the same as closing a position?

• Locking: Maintains both Buy and Sell positions on the same instrument.
• Closing: Ends a position and realizes its trading profit or loss.

A locked position does not automatically close either trade or eliminate previously incurred losses.

Do fully hedged positions still have trading costs?

Yes. Holding locked positions does not eliminate trading costs.

• Spread: The difference between the Bid and Ask prices.
• Commission: Charges applied to trades where applicable.
• Swap (overnight financing): Charges or credits that may apply when positions remain open overnight.
• Currency conversion: Conversion charges or adjustments where applicable.

Buy and Sell positions may have different swap rates, so their overnight financing amounts should not be assumed to offset each other.

Can a fully hedged position still be stopped out?

Yes. Fully hedged positions remain subject to margin requirements and account equity changes.

Even when directional market exposure is largely offset, trading costs and applicable margin requirements may affect your margin level.

If your account's margin level reaches the applicable Stop-Out threshold, positions may be closed automatically under the relevant trading conditions.

Does a fully hedged position require margin?

Fully hedged positions may still require margin, depending on the instrument, account configuration, leverage, and applicable trading conditions.

Opening an opposite position is subject to the applicable margin checks. Equal Buy and Sell volumes do not necessarily mean that no margin is required.

For information about whether your trading account supports opening opposite positions, refer to Can I Hedge Positions on My Vantage Trading Account?