The Hedge Newest Position (“HNP”) is an exposure protection feature that is provided by the Platform and assists clients to manage their trading exposure at all times. HNP is automatically triggered when the account equity in a client’s trading account falls below the used margin required in respect of open positions. HNP may be deactivated at any time by contacting the Company here.
Where HNP is triggered, the system will automatically open a fully hedged position in the opposite direction in an equal amount to the last opened position. HNP applies to all open positions and will continue to apply until all open positions are hedged unless HNP is deactivated.
Where possible HNP will be triggered as close as to the used margin, except in circumstances where the market moves too fast, in which case HNP may not be activated.
HNP will function within market hours and will not be triggered if (1) “hedging the newest position” will increase the exposure and/or (2) deactivated by a client and/or (3) a client’s equity insufficient to cover the spread of the “newly hedged position”.
Clients may continue using their trading accounts in parallel with the HNP and will be able to “top up” their margin if they wish to do so.
Please note that hedged positions may be transferred to the next trading date and thus are subject to the applicable rollover fees and/or any other fees.
HNP will be activated only after a client has used all of his First Protected Positions. HNP is compatible with any other trading benefits and offers available by the Company from time to time.
For any additional information, please contact us here.