All Collections
Trading & Instruments
Trading Conditions
Can I still get stopped-out even if I am fully hedged?
Can I still get stopped-out even if I am fully hedged?
Updated over a week ago

Yes, even if long positions and short positions are perfectly hedged against each other, your equity can still fluctuate considerably.

This is because spreads are variable, they can substantially widen at times, and have a direct effect on the valuation of your total position and on the account’s equity. Therefore, you should always guard against unexpected margin calls by maintaining sufficient margin coverage.

Did this answer your question?