What is it?
Hedging refers to traders using multiple accounts to take opposing positions on the same trade, effectively reducing risk while attempting to game the system. For example, a trader might go long in one account and short in another, ensuring one account profits regardless of market movement. Types of hedging that are strictly prohibited
Hedging of accounts under one user
Hedging of accounts between multiple users
Hedging of accounts between multiple firms
Any other form of hedging not yet identified
Why can’t I do it?
Lucid Trading is looking to provide traders with a platform to develop their skills and build consistent strategies, not to exploit loopholes. Allowing such practices would compromise the firm’s ability to identify truly profitable traders and could ultimately threaten the sustainability of the firm.
What happens if I do it?
We have put in place automatic risk management systems to identify Hedging activity. The first offense you will receive a written warning and all profits from hedging will be removed. If this activity persists, the accounts will be closed, profits will be forfeited, and you will be restricted from using our services permanently. You may request an appeal if you believe the activity has been misidentified.