Can I still get stopped-out even if I am fully hedged?

 

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.



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