Is Hedging Allowed at Hola Prime?
The Simple Answer
Yes, on a single account. Hola Prime 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 Hola Prime
Hola Prime 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, including as a group. 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 Hola Prime
Cross account hedging is the breach. Cross account or group hedging is a prohibited practice that 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, Hola Prime 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 the hedge inside one account, since pairing two accounts on the same instrument is the line Hola Prime draws.
Related Pages
FAQ
Is hedging allowed at Hola Prime?
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 Hola Prime accounts?
No. Opposite positions on the same instrument spread across accounts are prohibited, including as a group.
Can I hedge across two Hola Prime accounts?
No. It is prohibited to buy one lot of a pair on Account 1 and sell one lot on Account 2 at the same time, and group hedging is banned too.
What happens if I hedge across accounts at Hola Prime?
Cross account or group hedging is a prohibited practice that can breach the account.