Is hedging prohibited on TITANFX? We will explain the prohibitions, rules, and penalties. We will introduce hedging methods, margin, and hedging using separate accounts and other brokers. TITANFX is a broker with a high degree of freedom, so you can play with a lot of freedom.
What is a hedging strategy? What is it?
What is a hedging strategy? Hedging is a trading method in which you hold the same amount of “buying positions” and “selling positions” at the same time. Why hold two positions at the same time? This is a method that is often used when you cannot read the direction. Even if you incur a loss on one side, you will make a profit on the other, so even if the market moves significantly, the profit and loss will be offset. Therefore, it is a strategy in which you cut the side that is making a loss after it has moved to a certain extent and pull in the side that is making a profit.
Is hedging allowed in TITANFX?
Hedging is allowed in TITANFX, and it is possible to use a different account or a different broker. Normally, when we talk about hedging, it is often prohibited to use hedging between multiple accounts or with other companies. However, TITANFX allows hedging using a different account or a different broker. Hedging with a different account is also allowed, so it is very convenient.
Advantages of hedging
The advantage of hedging is that it is difficult to make a profit, but it is also difficult to make a loss. Therefore, it has the advantage that you will not easily lose. You can hedge your risk. Even if one position incurs a loss, you can make a profit with the other position.
Disadvantages of hedging
The disadvantage of hedging is that it is very difficult to time the settlement. Market movements are fickle, and there are many cases where just when you think a trend has emerged, it will come back, and there is a possibility that a position with unrealized gains will actually come back and you will end up with zero profits.
Prohibited items and points to note
Here is a list of prohibited items and points to note when hedging. Please be especially careful of the following points when hedging. Information is provided. There are no campaigns when doing this, so you cannot expect a bonus. Be careful when selecting different platforms or tools such as MT4 or MT5 with EA. You can trade a variety of products such as CFDs, stocks, precious metals, and foreign exchange.
Hedges aimed at zero cut
Hedges aimed at zero cut are not subject to zero cut. If an account is zero cut and the other account makes a profit, it is not subject to zero cut. Most brokers prohibit trading with multiple accounts for the purpose of zero cut in their terms of use. Even professionals need to carefully plan their strategies individually.
About penalties
If you make a malicious trade, you may be penalized. You may be suspended from new transactions, your profits may be confiscated, and your account may be frozen. If the transaction is highly malicious, your account may be frozen and you may never be able to use it again, so do not do so. Arbitrage and transactions targeting delayed rates are considered to be quite dangerous. Even if you have a balance, you will not be able to withdraw it.
There will be a fee burden
If you are using a blade account, you will be burdened with a fee. Since a long and short position is held simultaneously with a buy and sell position in the same currency pair, the transaction costs such as spreads and fees are doubled. Therefore, there is a considerable risk, especially with blade accounts. Be sure to limit your investment.
Possibility of being liquidated
There is a possibility that a liquidation will occur before the contract is executed due to the widening of the spread or the maximum negative swap point. Since a long and short position is held simultaneously with a buy and sell position in the same currency pair, the possibility of a liquidation is doubled. Be careful as there are rare cases where a liquidation will occur due to the influence of swaps and spreads. Be careful not to apply too much leverage.
You can open an account for free
You can open an account for free. It is one of the most recommended brokers because it offers the narrowest spreads in the industry. Orders can usually be traded for both long and short periods, so the services offered are sufficient and comprehensive.
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