Does Pepperstone allow hedging?
Yes. Pepperstone allows hedging on all its accounts, along with scalping, Expert Advisors, and news trading. You can open both a buy and a sell on the same instrument at the same time.
Hedging limits your exposure to price moves, but it does not eliminate trading costs. Each side of a hedge pays its own spread and, on a Razor account, its own commission.
Pepperstone hedging margin
When you hedge a position, Pepperstone calculates margin only on the larger side of the hedge. If you hold 2 lots long and 1 lot short on EUR/USD, margin is charged only on the 2-lot side, not on all 3 lots.
This makes hedging more capital-efficient than paying margin on both sides. It still leaves the net position exposed to price moves, so the hedge does not protect the unmatched portion.
Costs of hedging on Pepperstone
Every position in a hedge is a separate trade, so each one incurs the normal spread and any commission when opened and closed. On a Razor account, a fully hedged 1-lot position incurs commission on both sides.
Positions held overnight also pay or earn a swap at the daily rollover, at 5 p.m. New York time. Holding a hedge open for days or weeks can add up, so check the swap rates on both sides before keeping one open.
Does Pepperstone hedge client positions?
Yes. Pepperstone monitors its exposure to client trades, matches opposing client orders internally where possible, and hedges with multiple external providers when risk exceeds set limits.
This is a separate question from whether you can hedge your own trades. Internal order matching helps keep execution fast and slippage low across trading sessions.
Bottom Line
Pepperstone allows hedging on all accounts and charges margin only on the larger side of a hedge, making it a flexible choice for traders who use offsetting positions. In our assessment, hedging suits traders managing short-term risk around events. Traders should remember that each side still incurs its own costs and overnight swap fees.