What Is It?
Hedging refers to the use of multiple accounts to take opposing positions on the same trade. This tactic artificially reduces risk by ensuring one account profits regardless of the market’s direction. It is a form of system manipulation, not genuine trading.
Example:
A trader goes long on one NQ in one account and short NQ on another. No matter which way the market moves, one account gains while the other loses, manipulating the program structure to secure profits unfairly.
Prohibited Forms of Hedging
Lucid Trading strictly prohibits all forms of hedging, including but not limited to:
Hedging across multiple accounts held by the same user
Hedging between different users' accounts
Hedging between different firms or funded platforms
Any other form of hedging designed to bypass risk management rules
What Happens If I Hedge?
Lucid Trading has automated risk systems in place to detect hedging behavior. If your account is flagged:
You will receive an email notice & the associated accounts will be reset to prior days balance.
After repeated offenses all involved accounts will be breached and you may be permanently restricted from using Lucid Trading services.
Why Is It Prohibited?
Lucid Trading is committed to funding skilled, consistent traders, not those exploiting structural loopholes. Hedging:
Misrepresents a trader’s actual risk and skill
Undermines the evaluation process
Threatens the long-term sustainability of the firm
Allowing hedging would make it impossible to identify and reward legitimate trading performance.
Common Questions
Can I go long X contract and short X contract?
No, you cannot go long / short the same contract in the same or separate accounts. This is strictly prohibited.
Can I go long X contract Mini and short X contract Micros?
You can go long / short the same contract but one is micros and one is minis in the same account.
However, you cannot go long / short the same contract but one is minis or micros in separate accounts. This is strictly prohibited.
Can I go long X contract and short Y contract?
You can go long / short different contracts in the same account.
However, you cannot go long / short different contracts in separate accounts with correlated assets. This is strictly prohibited.
Example: You cannot go long ES in one account and short NQ in a separate account.
Correlated assets go for groupings in equities, metals, energies, etc.