forex-scalping.com

"Hedging" can mean three different things in prop rules, and they are treated differently:

1. Hedging in the same account: holding a long and a short on the same symbol. Often allowed on MT5 hedging accounts, banned on netting ones, and some firms prohibit it outright.
2. Hedging across your own accounts at one firm: almost always banned, because it guarantees one account passes.
3. Hedging across firms: also banned and detected through trade data sharing or payout reviews.

Related: correlated positions (long EURUSD and short USDCHF at the same time) are normally fine, but some firms look at it if the size is large.

If you use same-account hedges as part of a trade-management technique, it is worth confirming in writing that it is allowed on your specific account type.

Does your firm allow same-account hedging, and do you find any real use for it?

Same account hedging only stays on my card after I have written confirmation for the exact account type I run. Netting versus hedging mode changes the answer at some firms, and a verbal chat reply has bitten me once already.

My real use case is a partial lock while I trail the original stop, not a second ticket meant to cancel risk forever. I scale the hedge to the part I want protected, then flatten the hedge once the stop sits where I can live with it.

Cross account hedging at one firm I treat as always out. I do not need a clever reason; the detection risk is not worth a phase that looked clean on paper.

Correlated pairs stay separate in my notes. Long EURUSD and short USDCHF can still look like a synthetic hedge if the sizes match, so I cap combined exposure even when the rules stay quiet.

The written confirmation is the filter before I use the technique at all. Which account type are you on, hedging or netting, and did support answer in writing?