What Is It?
Hedging, in this context, 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 account and short on another. No matter which way the market moves, one account gains while the other loses, neutralizing overall risk and attempting 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
Common Questions
Can I go long X contract and short X contract?
No, you cannot go long / short the same contract in the same account or in separate accounts. This is strictly prohibited.
Can I go long X contract Mini and short X contract Micros?
No, you cannot go long / short the same contract but one is micros and one is minis in the same account or in separate accounts. This is strictly prohibited.
Can I go long X contract and short Y contract?
Yes, you may do this in the same account. However, you CANNOT go long X contract / short Y contract in separate accounts with the intent of sacrificing one account to profit in another.
What Happens If I Hedge?
Lucid Trading has automated risk systems in place to detect hedging behavior. If your account is flagged:
First offense:
You will receive a written warning
All profits generated from hedging will be removed
Repeated offenses:
All involved accounts will be closed
Remaining profits will be forfeited
You will be permanently restricted from using Lucid Trading services
You may submit an appeal if you believe the system has misidentified your activity.
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.