Hedging means opening offsetting positions so one side profits whatever the market does. It is strictly prohibited across the platform. Example: buying 1 CL in one account and selling 1 CL in another at the same time.
Situation | Allowed? |
Long and short the same contract at the same time, in one account or several | No |
Long the Mini and short the Micro of the same product | No |
Opposite positions on correlated products, e.g. long GC and short SI | No |
Offsetting positions with friends, family or a group | No |
Offsetting against an account at another prop firm | No |
Correlation applies broadly across product families such as equity indices, metals and energies. Automated systems detect hedging on every account.
Consequences
Account termination, immediately and without warning.
Hedging profits voided.
Passed evaluations reviewed.
Permanent restriction for repeated or severe cases.
On live accounts: immediate permanent ban, all accounts closed and locked Reserve forfeited.