Is Hedging Allowed at Audacity Capital?
The Simple Answer
No. Audacity Capital prohibits hedging, in the same account or across accounts, including as a group across firms. Opposite positions taken to offset risk are not permitted, so a hedge is treated as a banned strategy rather than a risk tool.
What Is Allowed and What Is Not
How Hedging Works at Audacity Capital
Audacity Capital places hedging on its prohibited list, so opposite positions taken to offset risk are not permitted. Because hedging itself is named, the rule is not limited to multiple accounts, and holding a buy and a sell on the same instrument is outside the rules even on one account.
The prohibition then extends across accounts. Specifically, building an offsetting position by pairing two accounts is also banned. , in the same account or across accounts, including as a group across firms. As a result, there is no compliant way to run opposite exposure on the same instrument here.
Consequently the firm expects directional trading. Therefore a trader who relies on hedging to manage risk will need an alternative, since the structure is treated as a banned strategy regardless of where the legs sit.
What Counts as a Breach at Audacity Capital
Any hedging structure is a breach at Audacity Capital. Breaking the rule breaches the account, and group hedging is treated as gaming the evaluation.
Additionally, the firm monitors for opposite positions across accounts and can act on them. Ultimately, because hedging is banned outright, the compliant approach is to trade one direction per instrument and avoid offsetting positions entirely.
Final Comments
Overall, Audacity Capital is a clear no for hedging in any form. In short, opposite positions to offset risk are prohibited on one account and across accounts alike, and breaking the rule carries a real penalty. By contrast with firms that allow a single account hedge, Audacity Capital prohibits opposing positions to reduce exposure in one account or across accounts, and treats multi account and cross firm group hedging as gaming the evaluation.
Related Pages
FAQ
Is hedging allowed at Audacity Capital?
No. Hedging is prohibited, so opposite positions taken to offset risk are not permitted, on one account or across accounts.
Can I hold a buy and a sell on one Audacity Capital account?
No. Because hedging is a prohibited strategy, opposite positions on the same instrument are not permitted even within a single account.
Does Audacity Capital allow a single account hedge?
No. Simultaneously placing opposing buy and sell positions to reduce exposure is not permitted, whether in the same account or across accounts.
What happens if I hedge at Audacity Capital?
Breaking the rule breaches the account, and group hedging is treated as gaming the evaluation.