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What is the definition of Opposite trading or Hedging across multiple accounts or traders ?
What is the definition of Opposite trading or Hedging across multiple accounts or traders ?
Updated over 7 months ago

Hedging as a trading style on one client account is allowed!

Hedging is used to secure trading positions against a possible adverse change in market conditions, and the resulting risks of loss. Hedging is created by opening positions on the same trading instrument, while each of the positions is of the opposite type (BUY/SELL).

A trading position can be partially or completely hedged on the same trading account.

Hedging across multiple accounts or clients is not allowed.

It is not allowed for the customer to use multiple trading accounts for hedging, i.e. when, for example, account 1. is intended for BUY orders and account 2. is designated by the customer for SELL orders of the same trading instrument. It does not matter if both accounts 1 and 2 are opened at Fintokei or not, hedging on different accounts is not allowed and leads to account breach.

Hedging of multiple accounts of two or more customers is also not permitted.

Fintokei has the right to close trades and cancel access to all accounts that are connected to the same Hedging pattern across multiple accounts or clients.

Kindly be advised that this definition applies to general instances and explanation, and the company retains the privilege to assess each case on an individual basis.

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