Is Hedging Allowed at City Traders Imperium?
The Simple Answer
Yes, on a single account. City Traders Imperium 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 City Traders Imperium
City Traders Imperium 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 through highly correlated assets. 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 City Traders Imperium
Cross account hedging is the breach. Group hedging and cross account hedging are 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, City Traders Imperium 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 group hedging, cross account hedging and correlated asset offsets are all banned.
Related Pages
FAQ
Is hedging allowed at City Traders Imperium?
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 City Traders Imperium accounts?
No. Opposite positions on the same instrument spread across accounts are prohibited, including through highly correlated assets.
Does City Traders Imperium ban correlated hedging?
Yes. Group hedging, cross account hedging and hedging using highly correlated assets across accounts are all prohibited.
What happens if I hedge across accounts at City Traders Imperium?
Group hedging and cross account hedging are prohibited and can breach the account.