Are grid trading, hedging and overleveraging allowed at Pivex?
Modified on Thu, 5 Nov at 6:52 AM
No. Grid trading, cross-account hedging and overleveraging are not allowed at Pivex. They often lead to high-risk exposure or avoid risk instead of managing it, which does not reflect real trading skill.
[Not Allowed] Grid Trading
Definition: Placing multiple buy and sell orders at predefined price intervals, forming a grid structure. Example: Setting buy orders every 20 pips above the market price and sell orders every 20 pips below.
Why this is prohibited: Often results in high-risk exposure and overleveraging, especially in volatile markets.
[Not Allowed] Cross-account Hedging
Definition: Opening or holding opposite trading positions on the same asset across two or more accounts. Example: Account A opens a BUY position on EUR/USD at 1.2000; Account B simultaneously opens a SELL position on EUR/USD at 1.2000.
Why this is prohibited: Hedging does not reflect real trading skill and is essentially risk avoidance, not risk management.
[Not Allowed] Overleveraging
Definition: The total combined margin used by all open positions within a single instrument group must not exceed 70% of your total account balance at any given moment.
Leverage limits vary depending on the instrument group being traded:
- Forex: Maximum leverage is 1:30
- Commodities: Maximum leverage is 1:10
- Indices: Maximum leverage is 1:5
Why this is prohibited: Aggressive cumulative exposure exposes trading accounts to rapid drawdowns that compromise long-term account viability. Keeping combined margin usage under 70% ensures positions remain adequately collateralized and aligned with required risk parameters.
Related: What are the restricted and prohibited trading strategies at Pivex? · Is high-frequency trading or copy trading allowed at Pivex?