Is Hedging Allowed at WSFunded?
The Simple Answer
No. WSFunded prohibits hedging, including group hedging across accounts. 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 WSFunded
WSFunded 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. , including group hedging across accounts. 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 WSFunded
Any hedging structure is a breach at WSFunded. WSFunded reserves the right to close the account for using prohibited strategies.
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, WSFunded 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, WSFunded does not allow hedge trading and specifically prohibits group hedging.
Related Pages
FAQ
Is hedging allowed at WSFunded?
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 WSFunded account?
No. Because hedging is a prohibited strategy, opposite positions on the same instrument are not permitted even within a single account.
Does WSFunded allow group hedging?
No. Group hedging, executing opposing positions as a risk hedging strategy, is specifically prohibited, and hedge trading is not allowed.
What happens if I hedge at WSFunded?
WSFunded reserves the right to close the account for using prohibited strategies.