Is Hedging Allowed at FXIFY?
The Simple Answer
Yes, on a single account. FXIFY does not ban an ordinary same account hedge, but it prohibits reverse hedging and group hedging. Reverse hedging means offsetting positions across accounts within the firm, and group hedging means several customers coordinating offsetting trades. Both are treated as ways to neutralise risk while appearing to trade.
What Is Allowed and What Is Not
How Hedging Works at FXIFY
FXIFY targets hedging that removes real risk. Reverse hedging is defined as placing offsetting positions across accounts within the same firm, for example a long on one account and an equal short on a second account. Because this neutralises exposure while keeping both accounts active, it is prohibited.
The firm also bans coordinated hedging between people. Group hedging occurs when multiple customers place offsetting trades in different accounts to minimise overall risk while still appearing to trade. As a result, arranging opposite sides across a group is treated the same as a single trader using two accounts.
By contrast, an ordinary hedge inside one account is not named among the prohibited strategies. Therefore holding a genuine offsetting position on a single account, without spreading it across accounts, sits outside the reverse and group hedging bans.
What Counts as a Breach at FXIFY
Reverse hedging and group hedging are the breaches. FXIFY reserves the right to terminate agreements immediately in the event of a breach, and profits generated from prohibited practices are void.
Additionally, all passed evaluations are subject to review, so a coordinated hedge can be examined after the challenge. Ultimately the safe path is to keep any hedge genuine and inside one account, rather than offsetting exposure across accounts or with other traders.
Final Comments
Overall, FXIFY allows a real single account hedge but bans the versions that remove genuine risk. In short, keep the hedge on one account and keep the market exposure real, and you stay clear of the reverse and group hedging rules. By contrast, the published definitions focus on accounts within the same firm, so hedging against an account at a different firm is not spelled out and should be confirmed directly.
Related Pages
FAQ
Is hedging allowed at FXIFY?
A genuine hedge within a single account is not prohibited. FXIFY bans reverse hedging, which offsets positions across accounts, and group hedging, where several customers coordinate offsetting trades.
What is reverse hedging at FXIFY?
Placing offsetting positions across accounts within the firm, such as a long on one account and an equal short on another, to neutralise risk while keeping both accounts active.
What is group hedging?
When multiple customers collaborate to place offsetting trades in different accounts, minimising overall risk while still appearing to trade. It is prohibited.
What happens if I reverse or group hedge?
FXIFY can terminate agreements immediately, profits from the practice are void, and passed evaluations are subject to review.