Is Hedging Allowed at DNA Funded?
The Simple Answer
In part. DNA Funded prohibits direct hedging between two accounts, along with reverse hedging and hedge arbitrage. It points traders instead toward pair trading and safe haven assets, so cross account offsetting is the structure the firm rules out.
What Is Allowed and What Is Not
How Hedging Works at DNA Funded
DNA Funded 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 DNA Funded
Cross account hedging is the breach. Reverse hedging between accounts and hedge arbitrage result in an account breach in the funded stage.
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, DNA Funded 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. By contrast, DNA Funded points traders toward pair trading and safe haven assets as accepted alternatives to a cross account hedge.
Related Pages
FAQ
Is hedging allowed at DNA Funded?
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 DNA Funded accounts?
No. Opposite positions on the same instrument spread across accounts are prohibited.
What can I use instead of hedging at DNA Funded?
Pair trading on two correlated assets and safe haven assets such as gold are accepted, while opposite positions across two accounts are prohibited.
What happens if I hedge across accounts at DNA Funded?
Reverse hedging between accounts and hedge arbitrage result in an account breach in the funded stage.