Is Hedging Allowed at Equity Edge?
The Simple Answer
No. Equity Edge prohibits hedging, on a single account or across 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 Equity Edge
Equity Edge 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. , on a single account or across 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 Equity Edge
Any hedging structure is a breach at Equity Edge. Breaching the rule can lead to payout deductions or account termination.
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, Equity Edge 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, Equity Edge lists hedging and group hedging among its prohibitions and also bans EAs and copiers.
Related Pages
FAQ
Is hedging allowed at Equity Edge?
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 Equity Edge account?
No. Because hedging is a prohibited strategy, opposite positions on the same instrument are not permitted even within a single account.
Does Equity Edge allow group hedging?
No. Hedging and group hedging are prohibited, alongside reverse arbitrage, HFT and the use of EAs or trade copiers.
What happens if I hedge at Equity Edge?
Breaching the rule can lead to payout deductions or account termination.