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Glossary

Cross-account hedging

Cross-account hedging is holding opposite positions in the same instrument in two or more accounts controlled by the same person or by people acting together, so that net market risk across the accounts is close to zero.

Why it matters for brokers and payment firms

One client hedging his own accounts may have a reason. Between accounts in different names it is how bonus, negative-balance and rebate abuse work. Links by identity, payment instrument and device decide which it is.

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