The Hedge Newest Position (HNP) is an exposure protection feature offered by the Platform to help clients manage their trading exposure continuously. HNP is automatically activated when the account equity in a client’s trading account drops below the margin required for open positions. Clients can deactivate HNP anytime by contacting the Company here.
When HNP is activated, the system will automatically create a fully hedged position in the opposite direction, matching the amount of the last opened position. HNP covers all open positions and remains active until all positions are hedged or HNP is deactivated.
HNP will trigger as close to the used margin as possible, except in cases of rapid market movement, which may prevent activation.
HNP operates during market hours and will not trigger if (1) hedging the newest position increases exposure, (2) deactivated by the client, or (3) the client’s equity is insufficient to cover the spread of the newly hedged position.
Clients can continue trading and may “top up” their margin if desired.
Hedged positions can be carried over to the next trading day and are subject to rollover fees and other applicable charges.
HNP activates only after all First Protected Positions are used and is compatible with other trading benefits and offers provided by the Company.
For additional information, please contact us here.
