Hedging is not allowed in any stage. A hedge is a long and a short open at the same time on the same instrument, or on two instruments of the same group, in one account or across your own accounts. The first time is a soft breach (a warning). The second time on the same account is a hard breach.
What counts as hedging
A long and a short open at the same time on the same instrument, or on two instruments of the same group.
In one account or across your own accounts.
Different expiries count: long ES March + short ES June is a hedge.
Mini against micro counts: long ES + short MES is a hedge.
Instruments from different groups are fine: long ES + short CL is OK.
Copying the same direction across your own accounts is not a hedge: long ES on account A + long ES on account B is OK.
The instrument groups
Opposite positions inside the same group are a hedge.
Group | Instruments |
Equity Index | ES, MES, NQ, MNQ, RTY, M2K, YM, MYM, NKD |
Currencies | 6A, M6A, 6B, M6B, 6C, 6E, M6E, 6J, 6N, 6S |
Crude Oil | CL, QM, MCL |
Natural Gas | NG, QG |
Metals | GC, MGC, SI, HG, PL |
Grains | ZC, ZS, ZM, ZL, ZW |
Livestock | HE, LE |
Examples
Positions open at the same time | Hedge? |
Long ES and short ES | Yes, same instrument |
Long ES and short MES | Yes, mini against micro |
Long NQ and short ES | Yes, both are in the Equity Index group |
Long CL and short QM | Yes, both are in the Crude Oil group |
Long GC and short SI | Yes, both are in the Metals group |
Long ES and short CL | No, different groups |
Long ES and long NQ | No, same direction |
Long ES on account A and short ES on account B (both yours) | Yes, across your own accounts. Both accounts take the breach (1 soft breach per account) |
What happens
Time on that account | Result |
1st time | Soft breach (warning email). The hedged positions are closed and their profit is removed (the profit of the whole position, from when it was opened). Losses stay. The account keeps trading. |
2nd time | Hard breach. The account is closed, reason: prohibited practice. You can reset the same account or buy a new account. Check the time left to reset on your dashboard. |
Scenario: a first hedge
You hold a long ES and open a short MES while the long is still open.
š You get a warning email. The hedged positions are closed and their profit is removed. If the hedged position had a loss, the loss stays. The account keeps trading.
Scenario: a hedge between two of your accounts
You hold a long ES on account A and a short ES on account B, at the same time.
š Both accounts take the breach, and each account receives its own soft breach. It is 1 soft breach per account.
If one of the two accounts had already used its soft breach, that account gets a hard breach. The other account only gets its own soft breach.
ā ļø You get 1 soft breach in the Evaluation, and 1 soft breach for the whole life of the SIM Funded Account. It does not come back after payouts.
Soft breaches are counted per account. A soft breach on one account does not use up the soft breach of your other accounts.
A reset does not give the soft breach back.
If the hedge is between two accounts, both accounts take the breach, and each one gets its own soft breach.
Rule Summary
Hedging: not allowed in the Evaluation and in SIM Funded
1st time: soft breach, warning, the account keeps trading
2nd time: hard breach, the account is closed. You can reset the same account or buy a new account
Hedge between two of your accounts: both accounts take the breach, 1 soft breach per account
Different groups: fine
Frequently asked questions
Is long ES and short MES a hedge?
Yes. Mini against micro counts.
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Is long ES and short CL a hedge?
No. They are in different groups.
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Does a hedge across my two accounts count?
Yes. Both accounts take the breach, and each account receives its own soft breach (1 soft breach per account).
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Does the soft breach come back after a payout?
No. It is 1 soft breach for the whole life of the SIM Funded Account.
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What can I do after a hedging hard breach?
You can reset the same account or buy a new account. You have a limited time to reset, so check the time left on your dashboard. The account you get after a reset is always a Challenge.
Where to go next
Soft breach vs hard breach
Why was my account breached?
Instruments and contract limits
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