Question about Stop loss and take profit when Virtual Hedging

Hi All,

I am a newbie and have a silly question about the mechanism of virtual hedging. That is, how the stop loss and take profit are dealt with when doing virtual hedging.

For example, I first open a long position with 10 lots, and then I open a short position with 5 lots with a stop loss and/or a take profit line. Due to the virtual hedging, 5 of the 10 lots in the first (long) position are closed. Then my question is, when the stop loss and/or the take profit of the second (short) position is reached, will the virtual hedging mechanism automatically add a long position with 5 lots to the pool (as an effect of exiting the second (short) position)?

Thanks a lot,

Yes, the short stop loss would open a new long position.

Thank you jcl!