Is Hedging Allowed at Blue Guardian?
The Simple Answer
Yes, on a single account. Blue Guardian allows hedging within one account, so you can hold opposite buy and sell positions on the same instrument together. However, hedging across multiple accounts is prohibited.
What Is Allowed and What Is Not
How Hedging Works at Blue Guardian
Blue Guardian keeps the boundary simple. A hedge held inside one account is treated as legitimate risk management, so opposite positions on the same instrument can sit together as long as they share a single account. Therefore a same account hedge is not the target of the rule.
The prohibition applies across accounts. Specifically, opposite positions on the same instrument spread over two accounts are prohibited. As a result, netting exposure across accounts falls outside the rules.
In practice the intent matters. Moreover, a hedge that stays on one account and manages a genuine position is what the rule is designed to allow, while a coordinated offset across accounts is what it is designed to stop.
What Counts as a Breach at Blue Guardian
Cross account hedging is the breach. Hedging between separate accounts is strictly prohibited and can breach the account.
By contrast, a hedge kept inside one account is permitted and does not breach on its own. Ultimately the safe path is to hold both legs on the same account and avoid coordinating opposite positions across accounts.
Final Comments
Overall, Blue Guardian is comfortable with single account hedging and firm against anything spread across accounts. In short, keep both legs on one account and the hedge stays compliant, while cross account hedging is prohibited. In short, keep both legs on one account, and note that news driven straddle and strangle setups are restricted separately.
Related Pages
FAQ
Is hedging allowed at Blue Guardian?
Yes, within one account. You can hold opposite buy and sell positions on the same instrument on a single account. Hedging across multiple accounts is prohibited.
Can I hedge across two Blue Guardian accounts?
No. Opposite positions on the same instrument spread across accounts are prohibited.
Are straddles allowed at Blue Guardian?
No. Strategies like straddles or strangles that aim to capitalise on rapid news driven shifts are not allowed, while a single account hedge is permitted.
What happens if I hedge across accounts at Blue Guardian?
Hedging between separate accounts is strictly prohibited and can breach the account.