Exness: Is hedging prohibited or possible? FX trading precautions explained in the latest version

Exness

At exness, we will explain in this article whether double-sided trading is possible, prohibited, or restricted, and the precautions and rules. Many Forex companies often prohibit the trading format called double-denominated trading. But what exactly is going on with Exness? Exness is a company that has few restrictions among FX companies and has a very high degree of freedom. It also mentions things that are prohibited.

Exness Basic Information

Company NameExness Group (based in Cyprus and other countries)
Year of establishment2008
Eligible productsCFDs (contracts for difference) for FX (foreign exchange), precious metals, energy, stock indexes, stocks, cryptocurrencies, etc.
Supported toolsMetaTrader 4 / MetaTrader 5 (MT4/MT5), Web Terminal, Exness App, etc.
Regulations and LicensesFCA (Financial Conduct Authority)
CySEC (Cyprus Securities and Exchange Commission)
FSA (Seychelles Financial Services Authority)
FSCA (South Africa) / CBCS (Curaçao)
Fund management/protectionCustomer funds are managed separately from the operating company’s funds
Leverage2000 times
Account TypeStandard
Standard Cent
Pro
Raw Spread
Zero
Spread0.2〜0.4 pips
Deposits and WithdrawalsCredit cards, domestic/international remittances, various electronic wallets, cryptocurrencies

Exness Overview and Features

Exness is an overseas FX/CFD broker established in 2008. Its distinguishing feature is the ability to trade not only currency pairs, but also gold, crude oil, stock indices, individual stocks, and cryptocurrency CFDs within a single account environment. It emphasizes technology-driven operations, highlighting its unique trading environment, fast withdrawal processing, and support for multiple trading platforms as its strengths.

Exness Overview

Service Type: Overseas FX/CFD Broker

Main Products: FX, Precious Metals, Energy, Stock Indices, Stocks, Cryptocurrency CFDs

Supported Platforms: Exness’s own Web/App, MetaTrader 5 (as stated in the information)

Key Features: Narrow spreads, flexible leverage, fast execution, money management functions, 24/7 support, etc.

1) Wide Range of Tradable Instruments

Exness handles a wide range of instruments, including not only FX currency pairs, but also gold (XAUUSD), crude oil (USOIL), stock indices, US stock CFDs, and cryptocurrency CFDs.

This is suitable for people who want to trade various markets with a single broker.

Suitable for:

People who want to trade not only foreign exchange but also gold and crude oil.

People who want to manage multiple markets with one account.

People who want to see market opportunities across different markets.

2) Multiple account types available, making it easy to choose from beginners to advanced traders.

Exness offers two main types of accounts: Standard and Professional.

Standard
Standard: The most common and easy-to-use.

Spreads from 0.2 pips

No trading fees

Relatively easy to understand for beginners.

Professional

Pro
Zero

Raw Spread (Offered as Exness’s professional account group)

Features:

Emphasis on lower spreads

Some accounts have trading fees

Designed with scalping, short-term trading, and EA (Expert Advisor) operation in mind.

Rough Guide to Choosing an Account

Beginner → Standard Series

Short-Term Trading/Cost-Focused → Pro/Zero/Raw Spread Series

3) Very Flexible Leverage Settings

Exness highlights its extremely high leverage settings as one of its key features, depending on account conditions. The Standard and Pro account descriptions even mention Maximum 1: Unlimited.

However, this is an area with both significant advantages and risks.

Advantages

Easy to take positions with small capital

High margin efficiency

Points to Note

Losses can rapidly increase if lot sizes are too high

Accounts can be significantly impacted by economic indicators or sudden market changes

Conclusion

While high leverage is a strength in itself, beginners should opt for lower leverage for safety.

4) Relatively Strong Spreads and Trading Costs

Exness officially highlights its narrow spreads and stable spread environment as strengths.

In fact, the Standard plan advertises spreads starting from 0.2 pips, the Pro plan from 0.1 pips, and the Zero plan offers 0 pips for some instruments.

Who is it advantageous for?

Scalping

Day trading

Those who trade frequently

However, spreads may widen during important economic indicator releases or periods of low liquidity, so the values ​​are not always fixed.

5) Emphasis on execution speed and method

Exness emphasizes high-speed execution and slippage reduction.

Furthermore, Market Execution and Instant Execution are used depending on the account type.

Specific Image

Standard Series: Primarily Market Execution

Pro Account: Instant Execution available in some cases

Zero / Raw Spread: More focused on market execution

Suitable for:

Those who frequently engage in short-term trading

Those who prioritize entry accuracy

Those who focus on automated trading or discretionary trading

6) Strong emphasis on fast withdrawal processing

Exness highlights its automated and fast withdrawal processing as a major feature.

Officially, they emphasize that many withdrawals are processed automatically and that processing is available even on weekends.

This is quite important when choosing an overseas FX broker, and from a user’s perspective,

“Is it easy to withdraw profits?”

“Is the withdrawal reflection not too slow?”

These are major factors in the decision-making process.

However, the actual deposit speed varies depending on the payment method used, identity verification status, and processing by the financial institution.

7) User-friendly proprietary app and web trading environment

Exness provides its own environment, the Exness Trade app and Exness Terminal.

In particular, Exness Terminal offers TradingView-style charts, one-click trading, watchlists, and portfolio management.

Convenient Features

Easy to trade using only a browser

Easy fund management and order placement with the smartphone app

Account management and trading are relatively integrated

Suitable for:

Those who want to use a more intuitive UI in addition to MT-style charts

Those who primarily trade on their smartphones

Those who want to quickly check information in a browser

8) Emphasis on Security and Fund Protection

Exness officially outlines the following protection measures:

Segregated accounts (separation of customer funds and company funds)

Negative balance protection

Identity verification and two-factor authentication methods

Multiple regulatory licenses

PCI DSS compliance, etc.

This is quite important when using overseas brokers.

However, “safe” does not mean “absolutely no risk.”

Especially since CFD/FX itself is a high-risk product,

What is Hedging in Exness?

In Exness, “hedging” means simultaneously holding both a “buy” and a “sell” position in the same asset.
For example, buying 1 lot of EURUSD and simultaneously selling 1 lot. Exness’s help section explains this as “hedged orders.”

1) Full Hedging

The buy and sell quantities are the same.
Example:

Buy 1 lot of EURUSD

Sell 1 lot of EURUSD

In this case, Exness requires 0% margin for full hedging (hedge margin).

In other words, the additional margin burden is significantly reduced when holding both positions.

2) Partial Hedging

The buy and sell quantities are different.
Example:
Buy 1 lot of EURUSD

Sell 0.6 lots of EURUSD

In this case, only the difference of 0.4 lots is treated as a “one-sided hedged” position,
and margin is required only for that unhedged portion.

Advantages of Hedging

Easier to pause during volatile market conditions

Some people use hedging when they are holding unrealized losses and want to “stop the movement until a new direction emerges.”

Used when you don’t want to immediately cut your losses on a position.

For example,

When you think the price might fall temporarily,

but you believe it will rise in the long term,

this is a way to neutralize price movements with a short-term opposite position.

Disadvantages

1) Spreads and costs are likely to be doubled

Since you hold both buy and sell positions, entry costs (spreads, etc.) tend to increase.

Depending on the account type, fees may also be a factor.

2) Easily “fixes” unrealized losses

When hedging, the profit/loss difference at that point is almost fixed,
and in many cases, it only postpones the problem.

3) Difficult to undo

The real difficulty lies in timing when to undo hedging.

If you close one side first, the remaining side becomes a normal single position,
and the required margin can suddenly increase.

Is hedging prohibited with Exness?

In short, hedging itself is not prohibited with Exness.

In fact, Exness officially refers to it as “hedged orders,” and its specifications are based on the premise of simultaneously holding buy and sell positions in the same security.

Generally Safe Hedging

A relatively common use of hedging is for risk hedging purposes within the same account.

For example:

To temporarily stop price movement

To mitigate risk on one side before economic indicator announcements

To hedge only a portion of the position

These uses are consistent with Exness’s specifications.

Caution Regarding “Essentially Unethical” Uses

We were unable to find any source on this page where Exness explicitly states that “hedging is prohibited.”

However, hedging that exploits loopholes in the terms and conditions is a common source of trouble with brokers in general.

1) Hedging for Arbitrage Using Multiple Accounts

Example:

Buy in Account A

Sell in Account B

This method aims to profit from bonuses, price differences, execution differences, and system differences.

This type of method may be considered by brokers as:
“Trading that utilizes system or condition differences, rather than normal hedging.”

2) Hedging with Multiple Accounts/Names

For example,

Buying with your own account

Selling with a family member’s or acquaintance’s account

This is a type of hedging based on the premise of collaboration.

This is more likely to be flagged as a way to circumvent conditions or be flagged as fraudulent than normal individual trading.

3) Trading that exploits zero-cut and margin requirements

Exness employs a 0% stop-out and its own margin rules, but
if you use this to design a strategy that intentionally “kills only one side”, there is a risk of account restrictions or being subject to review.

How to Use the Hedging Strategy

Yes, it’s possible. However, it’s crucial to understand that with Exness hedging, the “how to close” position is far more important than the “how to open” position.

Doing it carelessly can easily result in simply fixing unrealized losses and buying time.

What is the Exness Hedging Strategy?

It’s a method of simultaneously holding both buy and sell positions on the same currency pair.

Exness officially treats this as hedged orders. For full hedging, the required margin is 0%, while for partial hedging, only the difference in margin is required.

① Pause-Type Method (Beginner-Friendly)

This is the simplest method.

When to Use It

For example, suppose you:

Buy EURUSD

But it looks like it’s going to drop suddenly

However, you don’t want to cut your losses immediately

Procedure

Step 1: Open your initial position

Example:

Buy 1 lot of EURUSD

Step 2: Open the opposite position in the same quantity

Example:

Sell 1 lot of EURUSD

This is full hedging.

In this state, whether the market goes up or down,
one side will be profitable and the other a loss,
making it much easier to stabilize the fluctuations in profit and loss.

② Partial Hedging Method (Highly Practical)

Personally, I think this is a better method than full hedging.

When to Use

For example

When you think the market will rise in the long term

But it seems likely to fall in the short term

Procedure

Step 1: Take the original position

Example:

Buy 1 lot of EURUSD

Step 2: Place a partial opposite position

Example:

Sell 0.3 to 0.7 lots of EURUSD

For example

Buy 1.0 lot

Sell 0.5 lot

Then, only 0.5 lots will be hedged.

In this case, with Exness, only the difference of 0.5 lots is effectively exposed,
and margin is only required for that unhedged portion.

Points to Note When Hedging

There are quite a few points to note when hedging with Exness.

More importantly, it’s not about “entering” but “exiting” that’s crucial.

Hedging doesn’t “eliminate losses.”

This is the biggest misconception.

When hedging,

Even if the buy position is in loss, the sell position is profitable.

Even if the sell position is in loss, the buy position is profitable.

However, this doesn’t resolve the losses; it merely makes it easier to fix the profit/loss.

The required margin increases dramatically the moment one position is closed.

This is the biggest pitfall when hedging with Exness.

In Exness, if you have a complete hedged position, the margin requirement is treated as 0%, but
the moment one position is closed, the remaining position requires margin as a “normal single position.”

How dangerous is this?

For example,

Suppose you have a USDJPY buy position (1 lot)

USDJPY sell position (1 lot)

and are hedging with these positions. Even if the margin requirement seems low in this situation, if you only close the sell position, you’ll be left with a single buy lot.

Do not hedge before or after economic indicator announcements.

This is extremely important.

At Exness, HMR (High Margin Requirements) may be applied 15 minutes to 90 seconds before high-impact news.

During this time, leverage is restricted, and the required margin becomes heavier.

So what happens?

Even if you think, “It looks risky, so I’ll hedge now,”
if that timing coincides with HMR,

it becomes difficult to open a new reverse position.

It becomes difficult to close only one side.

You’ll need a heavier margin than expected.

These kinds of accidents are likely to occur.

Do not hedge before the weekend or before market close.

This is also dangerous.

At Exness, HMR may be applied before the weekend close and after the market reopens.

For many instruments, caution is needed for approximately 3 hours before the weekend close and approximately 1 hour after the market reopens.

Why is it dangerous?

When positions are held over the weekend,

gaps

widening of spreads

increase in required margin

these factors tend to coincide, and instead of “being safe if locked,” positions may become impossible to unlock on Monday.

Gradually worn down by spreads, fees, and swaps

Hedging is more costly than it appears.

This is because, since you hold both buy and sell positions,

the spread at the time of entry

transaction fees depending on the account type

swap depending on the holding period

tend to accumulate.

Frequently Asked Questions

The following is a compilation of frequently asked questions (FAQ) about hedging with Exness, organized in a way that is easy for beginners to understand.

Q1. What is hedging in Exness?

It means simultaneously holding both buy and sell positions in the same currency pair.

For example:

USDJPY Buy 1 lot

USDJPY Sell 1 lot

In Exness, simultaneously holding positions in opposite directions for the same currency pair and currency pair is called a hedged order.

Q2. Is hedging prohibited in Exness?

Basically, hedging itself is not prohibited.

Exness’s official documentation explains hedging (hedged orders) as a given, including:

Full hedging

Partial hedging

Margin requirements for hedging

Therefore, normal hedging within the same account is a usage intended by the system.

However, using multiple accounts, multiple names, or exploiting loopholes in the system is generally quite risky.

Q3. What is the difference between full hedging and partial hedging?

Full hedging

The number of buy and sell lots are the same.

Example:

EURUSD Buy 1.0 lot

EURUSD Sell 1.0 lot

Partial Hedging

This is a situation where the lot sizes for buying and selling are different.

Example:

EURUSD Buy 1.0 lot

EURUSD Sell 0.5 lot

At Exness,
full hedging is treated as 0% margin,
partial hedging requires margin only for the difference (unhedged portion).

Q4. Is hedging really safe?

No. It is not safe.

Hedging is not a method to eliminate losses,
but rather a method to temporarily pause the movement of profits and losses.

In other words,

It’s not “saved,” but merely “temporarily fixed.”

It can be used to wait until a clear direction emerges,
but it often doesn’t provide a fundamental solution.

Q5. Is there no margin requirement while hedging?

For full hedging,

basically, the margin is treated as 0%.

However, please note:

This only applies while you hold both positions.

The moment you close one,
the remaining position is treated as a normal single position,
and you may suddenly need to deposit margin.

Q6. Why is it sometimes impossible to close one side of a hedged position?

This is a very important FAQ at Exness.

The reason is that
when you close one side, the other side becomes “exposed.”

For example, if you close only the sell position while fully hedged,

only the buy position remains.

Normal margin is required for that buy position.

If you don’t have enough margin, the closing will not go through.

Exness officially states that during HMR (High Margin Requirements), you may not be able to close a hedged order due to insufficient free margin.

Q7. What is HMR (High Margin Requirements)?

It’s a system where the required margin increases during periods when the market is prone to volatility.

At Exness, HMR mainly occurs in the following situations:

Around important economic indicators

Around the weekend close

Around public holidays and market closures

Around daily closures for some stocks

For example, for many stocks,
HMR (High-Match Market Rate) may occur 15 minutes to 90 seconds before high-impact news.

Also, HMR occurs for many stocks around the weekend.

Q8. Is it safe to hedge before indicator announcements?

It’s actually dangerous.

A common misconception is:

“It’s likely to be volatile, so I’ll be safe if I hedge now.”

This is especially dangerous with Exness.

The reasons are:

HMR increases margin requirements

Spreads tend to widen

It may be impossible to close the positions even if you try to undo them

This is because…

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