Can I Open a Buy Trade and Then Immediately Place a Sell Trade on the Same Asset?

Modified on Thu, 25 Sep at 4:16 PM

Yes, you can open a buy trade and then later place a sell trade (or vice versa) on the same asset. However, there are important rules and conditions you must follow:


✅ What is Allowed

  • You may close a buy trade and later open a sell trade on the same asset (or vice versa).

  • You may switch between long and short positions as part of your trading strategy.

  • As long as the new position is opened after the previous one is closed, this is acceptable.


❌ What is Not Allowed

  • Hedging is prohibited. This means you cannot hold a buy and sell position simultaneously on the same asset (e.g., both long and short on XAU/USD at the same time).

  • Instant reversal trading (closing a buy and opening a sell in the very next second repeatedly) may be flagged as a prohibited pattern, since it resembles hedging or arbitrage behavior.


⚠️ Important Recommendation

  • To avoid being flagged, leave a 5–7 minute gap after closing a trade before opening an opposite-direction trade on the same asset.

  • This ensures your trading behavior is seen as legitimate strategy-based trading and not as system abuse.



Please also review this rule for clarity:

? Is Hedging Allowed on Funds.Pro?

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