Skip to main content

Definition

Hedging (restriction)

Holding offsetting positions — same-account hedging is often allowed; cross-account or cross-firm hedging is banned.

Hedging EUR/USD long and short in the same account is a strategy question. Hedging a challenge account against another account (yours or an accomplice's) turns the evaluation into a coin-flip you win either way — firms treat it as fraud.

Group 'pass services' that hedge customers against each other are the industrial version, and firms actively hunt the pattern.

Related terms

General industry definitions — individual firms define terms differently in their own ToS; the decoded rulebook for each firm is the source of truth. Educational, not financial advice.