Is Hedging Allowed at FundedFirm?
The Simple Answer
No. FundedFirm prohibits hedging, so you cannot hold both a buy and a sell on the same instrument at the same time. 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 FundedFirm
FundedFirm 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. , so you cannot hold both a buy and a sell on the same instrument at the same time. 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 FundedFirm
Any hedging structure is a breach at FundedFirm. Violations may result in account suspension, termination, profit cancellation or a permanent ban.
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, FundedFirm 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, FundedFirm states plainly that you cannot hold a buy and a sell on the same instrument at once.
Related Pages
FAQ
Is hedging allowed at FundedFirm?
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 FundedFirm account?
No. Because hedging is a prohibited strategy, opposite positions on the same instrument are not permitted even within a single account.
Can I hold a buy and a sell on the same instrument at FundedFirm?
No. Hedging is not allowed, so you cannot hold both a buy and a sell position on the same instrument at the same time.
What happens if I hedge at FundedFirm?
Violations may result in account suspension, termination, profit cancellation or a permanent ban.