Is Hedging allowed?

We allow hedging within the same account for Risk management purposes, as long as it does not include Hedging Arbitrage.

However, hedging between 2 accounts by placing a BUY order on one account and a SELL order on the other is prohibited.

This also applies to 2 correlated assets — for example, placing a BUY order on one correlated asset in one account and a SELL order on another positively correlated asset in a different account is equally considered hedging and is prohibited.

 *Hedging arbitrage is the practice of trading a price difference between more than one market for the same asset, in an attempt to profit from the imbalance.*