Case Study, Jonas: Two Brokers, Opposite Positions, and Double Costs
Posted: Thu Oct 29, 2026 7:00 am
Case Study, Jonas: Two Brokers, Opposite Positions, and Double Costs
Jonas is a composite character. He holds a long on EUR/USD at Broker A and, a day later, opens a short of the same size at Broker B, thinking he locked in his profit while waiting for a better exit. Each position is 0.5 lots, the spread is 1.0 pip at each broker, and the swap is minus 3.50 dollars per night on the long and plus 1.20 on the short.
Net market exposure: zero. A price move of 100 pips gains 500 dollars on one account and loses 500 on the other. His total equity does not change from price.
Costs. The second trade paid a spread of 1.0 pip, 5 dollars. Swap per night: minus 3.50 plus 1.20 equals minus 2.30 dollars. Over a week with seven rollover units, minus 16.10 dollars.
Margin. Each broker holds margin separately. At 1 to 30, with a notional of 55,000 dollars per position, margin is 1,833 dollars at each, 3,667 in total, though his net exposure is zero. If the two accounts have different equity, a move can push one account towards a margin call while the other gains and cannot help. A 150-pip move costs 750 on the losing side. If that account has 2,000 dollars of equity, its margin level could fall below stop-out, closing the position at a loss and leaving the other exposed.
So the hedge is fragile. It costs money, ties up margin, and hides risk in the gap between two accounts.
The question he avoided is whether to close the original trade.
Lesson: cross-broker hedges do not remove risk. They split it.
Exercise: compute the weekly cost of holding a locked position on your own broker's rates.
Jonas is a composite character. He holds a long on EUR/USD at Broker A and, a day later, opens a short of the same size at Broker B, thinking he locked in his profit while waiting for a better exit. Each position is 0.5 lots, the spread is 1.0 pip at each broker, and the swap is minus 3.50 dollars per night on the long and plus 1.20 on the short.
Net market exposure: zero. A price move of 100 pips gains 500 dollars on one account and loses 500 on the other. His total equity does not change from price.
Costs. The second trade paid a spread of 1.0 pip, 5 dollars. Swap per night: minus 3.50 plus 1.20 equals minus 2.30 dollars. Over a week with seven rollover units, minus 16.10 dollars.
Margin. Each broker holds margin separately. At 1 to 30, with a notional of 55,000 dollars per position, margin is 1,833 dollars at each, 3,667 in total, though his net exposure is zero. If the two accounts have different equity, a move can push one account towards a margin call while the other gains and cannot help. A 150-pip move costs 750 on the losing side. If that account has 2,000 dollars of equity, its margin level could fall below stop-out, closing the position at a loss and leaving the other exposed.
So the hedge is fragile. It costs money, ties up margin, and hides risk in the gap between two accounts.
The question he avoided is whether to close the original trade.
Lesson: cross-broker hedges do not remove risk. They split it.
Exercise: compute the weekly cost of holding a locked position on your own broker's rates.