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Prohibited: Hedging

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

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