Hedging in a Negative Margin
Hold an opposing position in the same instrument, buy and sell at once, so further movement stops hurting you. Most brokers demand extra margin for the second side. STP's NDD execution needs none, so you can hedge even when your margin is already negative.
How it works
What Hedging Actually Does
Holding a buy and a sell of equal volume on the same symbol freezes your floating result. The market can keep moving against your original idea while you decide what to do next, instead of the decision being made for you by a stop-out.
Market Maker vs NDD
With a market maker, one lot of EUR/USD costs roughly 1,000 USD in margin and the opposite position costs a second 1,000 USD. With STP Trading's NDD model the hedge is covered by the margin you have already posted, so no extra funds are required.
Hedging With a Negative Margin
This is the part almost no broker offers: even after losses have pushed your account margin below zero, you can still open a sell of the same volume. You are not forced to close at the worst possible moment or wire funds under pressure.
Why It Protects You
Volatility spikes around news releases are what trigger most stop-outs. Being able to hedge instantly, without funding the account first, turns a forced liquidation into a position you can manage calmly and unwind on your own terms.
See it in action
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