Hedging is an attempt to mitigate the risk of an investment by investing in an opposing one.

In this way, it can be thought of as a type of insurance. When you "hedge positions", you’re attempting to open both “long” and “short” spot positions on margin in the same order book.

We do not allow direct hedging

You cannot have both long and short positions on margin open at the same time in a single currency pair. All long spot positions on margin must be closed before a short spot position on margin can be opened (and vice versa). See Flipping Positions.

However, you can have multiple long spot positions on margin or multiple short spot positions on margin.

We do allow indirect hedging

It is possible to hold spot positions on margin in different directions for the same asset, so long as the positions are opened on different order books.