Is Hedging Allowed at Funding Pips?
The Simple Answer
No. Funding Pips lists hedging among its forbidden strategies, so it is not allowed on any account. Alongside hedging, the firm also bans long short arbitrage, reverse arbitrage and opposite account trading. In practice this means opposite positions on one instrument are not permitted, whether on a single account or spread across accounts.
What Is Allowed and What Is Not
How Hedging Works at Funding Pips
Funding Pips places hedging directly on its forbidden strategies list. Therefore opposite positions taken to offset risk are not permitted, and the rule is not limited to multiple accounts. Because hedging itself is named, holding a buy and a sell on the same instrument on one account is also outside the rules.
The firm goes further by banning opposite account trading and long short arbitrage. Specifically, if you run more than one account, positions on the same instrument are expected to be in the same direction. As a result, you cannot build an offsetting hedge by pairing accounts either.
Notably, same direction activity is treated differently. Copying your own trades between your own accounts in the same direction is allowed, so the restriction targets opposite exposure rather than multiple accounts as such.
What Counts as a Breach at Funding Pips
Any hedging structure is a forbidden strategy at Funding Pips, and forbidden strategies result in account termination. Therefore both a same account hedge and an opposite account arrangement can end the account.
Additionally, the firm monitors for coordinated opposite positions and may act without prior notice in clear cases. Ultimately, because hedging is banned outright, the compliant approach is to trade one direction per instrument and avoid offsetting positions entirely.
Final Comments
Overall, Funding Pips is a clear no for hedging in any form. In short, opposite positions to offset risk are forbidden on one account and across accounts alike, and breaking the rule leads to termination. By contrast, same direction trading across your own accounts is fine, so the firm suits directional traders rather than anyone who relies on hedging to manage risk.
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FAQ
Is hedging allowed at Funding Pips?
No. Hedging is on the firm’s forbidden strategies list, so it is not allowed on any account. Opposite positions taken to offset risk are prohibited.
Can I hold a buy and a sell on one Funding Pips account?
No. Because hedging itself is forbidden, opposite positions on the same instrument are not permitted even within a single account.
What about opposite positions across two accounts?
Also prohibited. Opposite account trading is banned, and positions on the same instrument across your accounts are expected to be in the same direction.
What happens if I hedge at Funding Pips?
Hedging is a forbidden strategy, and forbidden strategies result in account termination. The firm may act without prior notice in clear cases.