Hedging (or Locking) refers to opening two opposite positions in the same market at the same time, typically by placing both a buy (long) order and a sell (short) order simultaneously.
The purpose of doing so is to maintain relatively stable profit and loss during price fluctuations, thereby hedging in the current market risk exposure. When market conditions are uncertain, hedging positions can be used as a temporary method to mitigate risks caused by volatility.
For example, if the market direction is unclear, opening both a long and a short position simultaneously can help prevent immediate losses caused by price movements.
However, hedging does not mean the account is 100% safe, nor does it completely eliminate the risk of stop-out. Due to the accumulation of overnight swap charges and the possibility of significant spread widening during volatile market conditions, the account may still face insufficient margin, which could ultimately trigger the stop-out mechanism.