Hedging

1 min. readlast update: 07.22.2025

What is Hedging?

Hedging is a trading strategy that involves placing trades in both directions (buy and sell) on the same asset simultaneously, maintaining open positions for both sides on a single instrument. This strategy aims to help reduce risk and protect traders from sudden market changes.  

Is hedging allowed on Liquid Brokers? 

Yes, hedging is allowed. However, please note that hedging between different accounts is not permitted. 

What happens if I hedge trades between different accounts? 

Hedging trades between different accounts is strictly prohibited and considered a violation of our trading policies. Such actions may result in disciplinary measures. 

 

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