At FuturesElite, we are committed to maintaining a fair and transparent trading environment where every trader is evaluated on genuine skill and disciplined risk management. Hedging compromises that environment, and for this reason it is strictly prohibited across our platform.
Hedging is the practice of opening offsetting positions so that one side profits regardless of market direction, effectively neutralizing risk while still generating a payout on the winning leg. Although this may appear to be a valid trading approach, it does not reflect real market exposure and is treated as a prohibited practice under our Fair Play guidelines.
Example: A trader buys one CL contract in one account and sells one CL contract in another account at the same time. Whichever way the market moves, one account profits and the other loses, allowing the trader to extract a payout without taking on real directional risk.
Forms of Hedging That Are Not Allowed
The following practices are all considered hedging and are strictly prohibited:
Multi-Account Hedging by a Single Trader: Holding offsetting positions across two or more accounts owned by the same trader.
Coordinated Hedging Between Users: Coordinating offsetting positions across accounts held by different traders, including friends, family members, or group participants.
Cross-Firm Hedging: Using a FuturesElite account in combination with an account at another prop firm to neutralize risk.
Any Equivalent Workaround: Any other arrangement designed to bypass our risk management rules by offsetting exposure across accounts.
What Happens If You Hedge
FuturesElite uses automated systems to detect hedging activity across all accounts on the platform. In line with our Fair Play and Prohibited Trading Practices policy, the following actions may be taken when hedging is identified:
Account Termination: We reserve the right to terminate any account involved in hedging, immediately and without warning.
Profit Confiscation: Any profits generated through hedging activity will be voided.
Evaluation Review: Passed evaluations linked to hedging activity will be reviewed, and traders may not progress to the next phase.
Permanent Restriction: Traders found engaging in repeated or severe hedging activity may be permanently restricted from using FuturesElite services.
Why This Rule Exists
Hedging undermines the integrity of our evaluation process. It conceals a trader’s actual ability, distorts the risk profile we use to identify skilled traders, and threatens the long-term sustainability of the program for everyone who participates in good faith. By prohibiting hedging, we protect both the fairness of our platform and the traders who rely on it.
Common Questions
Can I trade two different products in opposite directions?
No. Holding opposite positions on different products is not permitted, whether the positions are placed in a single account or split across separate accounts. This applies in particular to correlated instruments, where the offsetting exposure functions as a hedge. For example, going long GC in one account while shorting SI in another is not permitted, as gold and silver tend to move closely together. Correlation applies broadly across product families such as equity indices, metals, and energies.
What if one position is a Mini and the other is a Micro of the same product?
No. Holding a long and a short on the Mini and Micro versions of the same product at the same time is not permitted, whether the positions are placed in a single account or split across separate accounts. The Mini and the Micro track the same underlying market, so offsetting them is treated as hedging in either case.
Can I be long and short the same contract at the same time?
No. Holding a long and a short on the same contract at the same time is strictly prohibited, whether the positions are placed in one account or split across multiple accounts.