Our margin requirement for hedged positions is Zero.
When you decide to hedge a position in one particular instrument (respectively buying or selling the same amount of that instrument), there will not be any margin needed to maintain the hedged position. As such, your net position will be equal to zero.
As a result of the decreased margin, you will have the benefit of more available funds.
Example:
You opened the following orders on you trading account:
1) 1 Lot Buy EURUSD on price 1.18343 (Margin Requirement : 236.69 $ )
2) 1 Lot Sell EURUSD on price 1.18329 (Margin Requirement : 236.66 $ )
Total Margin Requirement : 0 $
Margin Free hedging, however, can also pose a risk of triggering either “Margin Call” or “Stop Out” events if one of the positions is closed and the other requires a margin that equals or exceeds the one available for trading, or in the case where a spread widening might occur that affects your equity negatively and increases your losses.
Note: Our Invest account allows 'LONG only' which means you can't sell to open. As such you can't "hedge" a position.