Free marging when Hedging

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Hi gang, I am coding some lines in MQL5, for a hedging account, and have a quick question.

Lets say I open 1 lot long position, and if it goes to certain drawdown I open 1 lot short position, then if price keeps going down I don´t have more than the loss I want to have. But what happens if price keeps going down non stop?, because I ´ve been testing and the free margin keeps the same, as the open positions total equity keeps the same as the difference between the long and the short. Is there sth I am not seeing?, can price keep going down with no limit and still have no issues with the margin?????

Thanks!!!!!

 
nachob87:

Hi gang, I am coding some lines in MQL5, for a hedging account, and have a quick question.

Lets say I open 1 lot long position, and if it goes to certain drawdown I open 1 lot short position, then if price keeps going down I don´t have more than the loss I want to have. But what happens if price keeps going down non stop?, because I ´ve been testing and the free margin keeps the same, as the open positions total equity keeps the same as the difference between the long and the short. Is there sth I am not seeing?, can price keep going down with no limit and still have no issues with the margin?????

Thanks!!!!!

-The swap every day will be reducing the equity (and hence the free margin reduces.

-Usually during 23:00-01:00 the spread increases and is not uncommon to see 25-50 pips for basic symbols for a few minutes. During those few minutes your floating loss will increase and sustain a big drop in free margin that  will come back to normal after.
Asuming you have enough free margin to not go stop out.

2 lots on EURUSD with  50 pips spread will mean -1000usd floating loss increase and free margin reduction for that time.


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