Is it prohibited to trade currency pairs on a long/short basis with an account with the overseas FX broker Axiory? This article explains the features, advantages, disadvantages, and points to note. In fact, long/short is allowed with Axiory. However, it is quite difficult to win from the beginning with this method. I will introduce the advantages and disadvantages of this method, so I hope you will find it useful.
- Axiory’s company profile and basic information
- What is AXIORY Hedging?
- Advantages and Disadvantages of Hedging with AXIORY
- AXIORY Hedging Rules
- Calculating Margin Requirements for Hedging in AXIORY
- Points to Note When Hedging with AXIORY
- Frequently Asked Questions About Hedging with AXIORY
- Q: Is hedging possible with AXIORY?
- Q: What happens to the margin required when hedging?
- Q: What happens to swap points?
- Q: Can hedging generate profits?
- Q: What should I be careful of when hedging?
- Q: Can hedging be used with automated trading (EA)?
- Q: Are there any situations in which hedging is prohibited?
- You can open an account for free
Axiory’s company profile and basic information
Axiory is an overseas FX broker established by Axiory Global Ltd. in 2015. Axiory is headquartered in Belize and incorporated due to the country being a “tax haven”. It has obtained the IFSC license from the Financial Services Authority of the Belize International Financial Services Commission, making it a very reliable and safe FX broker. The official website is operated by PT INTERNATIONAL LIMITED, a group company based in the UK. The registered information is as follows. The narrow spread is a great advantage in terms of investment. It is a top-class exchange for investors.
| 運営会社 | Axiory Global Ltd. |
| 設立 | 2015 |
| 所在地 | No. 1 Corner of Hutson Street andMarine Parade Belize City, Belize |
| 金融ライセンス | IFSC：ベリーズ国際金融サービス委員会 |
Separate management and trust protection
Axiory is very reliable because it has separate management and trust protection. Customer funds are stored in “Doha Bank”, so there is no risk that customer funds will be used without permission by the management. Trader’s account funds are kept in trust, and if Axiory goes bankrupt, the trader’s account funds will be fully refunded later by the auditing organization, so it is very transparent and safe. Funds are not stopped, they are protected and guaranteed, and are maintained under regulations, so users can feel safe when starting.
Also holds a financial license
Axiory is very safe because it holds a financial license. It is a very reliable broker with regular audits by external institutions. Even those living overseas can trade as they are without any disadvantages. If you wish in advance, you can choose the account type from My Page. Management has been improved and regulations have been established, so you can rest assured. Every year, you can operate with stable funds almost Monday to Friday.
There is a warning from the Japanese Financial Services Agency
After investigating, Axiory has been found to be very safe in Belize because it holds licenses from each financial service agency, but it is not available in Japan and has received a warning from the Financial Services Agency. This is because overseas FX brokers are in violation of the law by operating official Japanese websites and announcing campaigns in Japanese, and so they have received a warning. However, users are free to use the service at their own risk. Japanese law does not allow solicitation without permission.
Source : 金融庁
What is AXIORY Hedging?
This article explains “AXIORY Hedging.” First, let’s understand the basics of hedging.
What is Hedging?
Hedging (also known as hedging) is simultaneously buying and selling the same currency pair.
Example: Buying 1 lot of USD/JPY and selling 1 lot at the same time.
Advantages
Mitigates the risk of market reversals.
Limits losses when it’s unclear whether the market will rise or fall.
Strategically locks in profits.
Uses multiple strategies simultaneously, such as for foreign exchange gains and swaps.
Disadvantages
Increases spread burden.
Requires payment of both buy and sell spreads.
Profits tend to be limited.
While it can help avoid losses during large market fluctuations, it’s difficult to generate significant profits.
Hedging with AXIORY
Hedging is possible with AXIORY.
This is one of AXIORY’s unique features, as it is prohibited by some other FX brokers.
There are no restrictions based on account type, and you can hedge with a standard trading account.
Notes
Swap point allocation conditions vary depending on the account.
When buying and selling the same currency pair, the swap may be offset by a positive or negative amount.
Hedges are also possible with automated trading (EA).
AXIORY supports hedges with MT4/MT5 EA trading.
When should I use it?
Short-term risk aversion (before the announcement of important indicators, etc.)
As part of a swap point or discretionary trading strategy
When the market is in a range (a state in which the range of up and down movements is fixed)
Advantages and Disadvantages of Hedging with AXIORY
Let’s summarize the advantages and disadvantages of hedging with AXIORY.
Advantages
Reduced Risk of Loss
By simultaneously holding both long and short positions in the same currency pair, you can reduce losses during large market fluctuations.
This is especially effective before indicator releases or when the market is difficult to predict.
Strategic Profit Locking
Hedging allows you to secure a portion of your profits in both up and down markets.
It is also possible to target swap points (if there is a swap profit).
Flexible Automated Trading Support
Hedging is also possible using EAs (automated trading) with MT4/MT5.
While this is sometimes prohibited by other companies, AXIORY does not.
Suitable for Range-Fluctuation Strategies
In range-fluctating markets, hedging makes it easy to aim for profits.
Disadvantages
Spread Costs Double
Since you pay both the buy and sell spreads, costs are higher than usual.
Profits tend to be limited.
While reducing the risk of loss, it’s difficult to aim for large profits.
Swap point offsetting.
When holding both buy and sell positions simultaneously, positive and negative swaps may offset each other.
Management becomes more complicated.
Since multiple positions are held simultaneously, managing unrealized gains and losses and determining when to close them can be somewhat difficult.
AXIORY Hedging Rules
We will summarize the rules for hedging on AXIORY. AXIORY is relatively flexible compared to other companies, but there are a few important points to keep in mind.
Hedging is Allowed
AXIORY allows hedging, which involves holding simultaneous buy and sell positions for the same currency pair.
There are generally no restrictions based on account type (Standard, Nano, MT5, etc.).
Account/Platform Restrictions
Available on MT4/MT5 platforms
Hedging is also possible with automated trading (EA).
You can hold multiple positions for the same currency pair.
For example, you can split positions by buying 1 lot of USD/JPY and selling 0.5 lots at the same time.
Handling of Swaps and Fees
When hedging, positive and negative swap points may offset each other.
When holding long-term, attention should be paid to swap profits and losses.
Spreads are applied separately for buys and sells, as usual.
Caution and Recommended Rules
Do not rely excessively on risk aversion.
Hedging can help limit losses, but it can also increase spread and swap losses.
Even hedging cannot completely prevent losses when indicators are released.
Beware of sudden price fluctuations (slippage).
Properly manage your trading history and positions.
Since repeated hedging can easily become complicated, manage your positions using an MT4/MT5 terminal.
Calculating Margin Requirements for Hedging in AXIORY
This section explains how to calculate margin requirements for hedging in AXIORY. Hedging involves simultaneous “buy” and “sell” trades. However, margin requirements are calculated according to your account’s margin calculation rules rather than simple addition.
Basic Rules for Hedging
When buying and selling the same currency pair at the same time
→ In AXIORY, the margin requirements for hedging positions are calculated for only one side.
Example: Buy 1 lot of USD/JPY and sell 1 lot of the same.
Margin requirements = 1 lot only
For different currency pairs
→ Margin requirements are calculated for each currency pair and then added together.
Margin Calculation Formula (Example: USD/JPY)
Required Margin (JPY) = Trading Volume × Trading Price ÷ Leverage
Example 1: Hedging (USD/JPY 1 lot, price 150 JPY, leverage 25x)
1 lot = 100,000 units
Calculation: Required Margin = 100,000 × 150 ÷ 25 = 600,000 JPY
Even with 1 buy lot + 1 sell lot, the required margin is only 600,000 JPY.
Example 2: Hedging Different Currency Pairs
USD/JPY 1 lot (150 yen), EUR/USD 1 lot (1.10 dollars)
Margin is calculated separately and added together.
USD/JPY: 100,000 × 150 ÷ 25 = 600,000 yen
EUR/USD: 100,000 × 1.10 ÷ 25 × yen equivalent (e.g., 1 USD = 150 yen) = 660,000 yen
Total Margin Required = 1,260,000 yen
Key Points
For hedging the same currency pair, the margin required is only for one side.
Margin efficiency is high.
Swaps and profit/loss are calculated separately.
Unrealized profit/loss may be offset in hedging positions.
Margin requirements vary depending on leverage.
Higher leverage reduces margin requirements.
💡 Summary
Hedge the same currency pair: Margin is required for only one side.
Different currency pairs: Margin for each pair must be combined.
Swaps and profit/loss must be managed separately.
Points to Note When Hedging with AXIORY
AXIORY’s service details summarize points to note when hedging. While hedging is effective for risk management and strategy, significant costs and improper management practices due to market conditions and environmental factors can actually magnify and increase losses.
Beware of Spread Costs
Hedging requires paying both buy and sell spreads.
Repeated hedging in short-term trades can accumulate spread costs and affect profits and losses.
Swap Point Offset
When hedging the same currency pair, positive and negative swaps may offset each other.
Be careful, as profits may not be realized if you are aiming for long-term swaps.
There are Limits to Loss Avoidance
Hedging can diversify risk, but losses may occur due to sudden market fluctuations (slippage) or gaps at the time of indicator announcements.
It does not prevent all losses.
Thorough Margin Management
When hedging the same currency pair, the required margin is only for one side. However, hedging multiple currency pairs or adding positions can result in insufficient margin.
It is important to constantly monitor your positions and margin balance in the MT4/MT5 terminal.
Cautions when Using Hedging with Automated Trading Tools (EAs)
When hedging using an EA, there is a risk of infinitely increasing your position due to incorrect settings.
Be sure to set position limits and stop-loss rules.
Clarify the purpose of hedging.
If you do not clarify whether your goal is to avoid losses or secure profits, hedging will only increase unnecessary costs.
Frequently Asked Questions About Hedging with AXIORY
We have compiled a list of frequently asked questions (FAQs) about hedging with AXIORY. This information is aimed at beginners and experienced traders. Be sure to trade the target security well in advance to avoid triggering a stop loss before execution.
Q: Is hedging possible with AXIORY?
A: Yes, it is.
You can simultaneously hold “buy” and “sell” positions for the same currency pair.
Hedging is also supported by automated trading (EA) in MT4/MT5.
Q: What happens to the margin required when hedging?
A: When hedging the same currency pair, the margin required is calculated for only one side.
Example: USD/JPY 1 lot buy + 1 lot sell → Margin required is only 1 lot.
For different currency pairs, the margin for each currency pair is added together.
Q: What happens to swap points?
A: When hedging the same currency pair, positive and negative swaps may offset each other.
Caution is required when aiming for swaps with long-term holdings.
Q: Can hedging generate profits?
A: You can aim for profits by taking advantage of market ranges and swap gains, but it is not suitable for aiming for large profits.
The main purpose is to diversify loss risk and manage positions.
Q: What should I be careful of when hedging?
A: Please be aware of the following:
Spreads are doubled
Possibility of swaps being offset
Risk of loss during sudden fluctuations
Risk of margin insufficiency
Position increase management when using an EA
Q: Can hedging be used with automated trading (EA)?
A: Yes, AXIORY allows hedging with MT4/MT5 EAs.
However, failure to set position limits and stop-loss rules increases risk.
Q: Are there any situations in which hedging is prohibited?
A: It is not officially prohibited by AXIORY.
Other companies may prohibit hedging, so it is one of the features of AXIORY.
You can open an account for free
You can open an account for free. If you are interested, give it a try. Bonuses and campaigns are held irregularly, and it is easy to make a profit by ordering currency pairs. Standard, Nano and Terra accounts are popular. You can trade short or long, and you are completely free to use them however you like. Utilize your assets, catch the trend by buying and selling, and aim for profits by profit and loss.
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