I have a mini account using Trade Station II with FXCM and was wondering if it is possible to have both a long and a short position open in the same currency at the same time??
Is there an option that will allow me to do this so that when i open a short position during a preexisting long position it won’t close out the original position?
Many Thanks!
If you open another account with them, you can trade short in one and long in another. Oanda for instance has sub accounts where you can do this.
Regulations require that brokers net out long and short trades done in the same account, so you cannot hold both at the same time in one currency pair (often referred to by retail forex traders as “hedging”). As Buckscoder said, though, you can hold opposing positions in seperate accounts. The question then becomes why you’d want to.
If you want to open a sub-account as mentioned by Buckscoder and rhodytrader, you would need to request it through www.myfxcm.com. MyFXCM is a account management portal accessible by all live accounts with FXCM. You can use it to perform administrative functions such as changing contact information, depositing funds, requesting withdrawals, requesting new accounts, etc.
Being long/short at the same time is referred to as hedging. Forex hedging is not allowed in the US due to regulations. If you reside outside the United States, you can open through FXCM UK which offers hedging.
-Jason