Skip to main content

Prohibited: Hedging

1
Written by 10 Four
Updated over a week ago

What Is It?

Hedging refers to opening opposing positions on the same instrument across accounts in order to guarantee profit regardless of market direction.

Example:

Going long NQ in one account and short NQ in another.


Prohibited Forms of Hedging

• Hedging across multiple accounts owned by the same trader
• Hedging between accounts owned by different users
• Hedging between different prop firms
• Any form of hedging designed to bypass risk management rules


What Happens If I Hedge?

If hedging behavior is detected:

  1. Accounts may be reset to prior balances

  2. Repeated violations may lead to permanent restriction from the platform


Why It Is Prohibited

Hedging:

• Misrepresents real trading performance
• Undermines the evaluation process
• Prevents fair allocation of capital

Did this answer your question?