What Is Hedging?
Hedging means opening a position in the opposite direction of an existing trade on the same instrument. For example, you can have a 1-lot buy and a 0.5-lot sell on EUR/USD at the same time.
Why Use Hedging?
Risk management: Lock in the current profit/loss while you reassess the market
Strategy separation: Run multiple strategies on the same instrument
Protection during news: Open a hedge before high-impact events to limit exposure
How Hedging Works at NEOMAAA
When you open an opposite position, MT5 treats them as separate trades. Each has its own SL, TP, and swap charges.
Margin for hedged positions: NEOMAAA may offer reduced margin requirements for hedged positions (net exposure is lower), depending on the instrument. Check the specific instrument specifications in MT5.
Closing Hedged Positions
You can close each position individually, or use the Close By feature:
1. Right-click one of the hedged positions in the Trade tab
2. Select Close By
3. Select the opposite position
4. Click Close
This closes both positions simultaneously, and you're only charged one spread instead of two.