Is Hedging Allowed at BEM Funding?
The Simple Answer
No. BEM Funding prohibits hedging, including buying and selling the same instrument across different accounts. 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 BEM Funding
BEM Funding 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. , including buying and selling the same instrument across different accounts. 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 BEM Funding
Any hedging structure is a breach at BEM Funding. Breaches can lead to immediate account termination with no refund.
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, BEM Funding 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, BEM Funding treats hedging as a prohibited practice and enforces it with termination and no refund.
Related Pages
FAQ
Is hedging allowed at BEM Funding?
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 BEM Funding account?
No. Because hedging is a prohibited strategy, opposite positions on the same instrument are not permitted even within a single account.
Does BEM Funding allow hedge arbitrage?
No. Hedge and reverse arbitrage are prohibited, as is buying and selling the same instrument across different accounts.
What happens if I hedge at BEM Funding?
Breaches can lead to immediate account termination with no refund.