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What Is Classified as Hedging and Stacking?
What Is Classified as Hedging and Stacking?

What is classified as Hedging and Stacking?

A
Written by Alpha Capital Group
Updated over a week ago

  • Hedging: Hedging is allowed and is classified as having trades running in both directions on the same instrument at the same time. This means you can have both long (buy) and short (sell) positions open simultaneously for the same asset.

*Note: Hedging with the aim to lock in a price/spread arbitrage is a prohibited trading strategy and will result in the closure of your account.

  • Stacking: Stacking is also allowed and is classified as opening 3 or more trades on the same instrument at the same time at the same price. This means you can have multiple positions in the same direction on the same asset concurrently.

Both hedging and stacking can be utilized within the bounds of our trading guidelines and risk management policies. Please ensure that your trading strategies comply with these rules to maintain a positive trading experience.

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