Is Hedging Allowed at FundedNext?
The Simple Answer
Yes, on the same account. FundedNext allows hedging within one account, so you can place both buy and sell orders on the same asset to hedge a position. However, hedging or group hedging across multiple accounts is prohibited, and taking close to a full daily loss in one trade can be treated as a multi platform hedge.
What Is Allowed and What Is Not
How Hedging Works at FundedNext
FundedNext states the rule with clear examples. Hedging is allowed only within the same account, so buying 1 lot of EURUSD and simultaneously selling 1 lot of EURUSD on Account A is fine. Therefore a same account hedge is treated as legitimate risk management.
The prohibition applies across accounts. Specifically, buying 1 lot of EURUSD on Account A and selling 1 lot on Account B to hedge across two accounts is not allowed, and opening several accounts to place opposite direction trades on the same asset is defined as group hedging. As a result, netting exposure across accounts is banned.
Moreover, FundedNext watches for indirect hedging. Taking the risk of a full or near full daily loss limit in a single trade can be suspected as a multi platform hedge, so unusually large one-off risk can draw the same scrutiny as an obvious cross account structure.
What Counts as a Breach at FundedNext
Cross account and group hedging are the breaches. FundedNext states plainly that hedging across multiple accounts is not a genuine trading strategy and can result in account termination.
By contrast, a hedge kept inside one account is expressly allowed and does not breach the rule on its own. Ultimately the safe path is to keep both legs on a single account and avoid any structure that nets exposure across accounts or platforms.
Final Comments
Overall, FundedNext is comfortable with single account hedging and firm against anything spread across accounts. In short, keep both legs on one account and the hedge is allowed, while group hedging and cross account offsets are prohibited. By contrast, the firm’s published examples focus on its own accounts, so hedging against an account at a different firm should be confirmed directly if it applies to your setup.
Related Pages
FAQ
Is hedging allowed at FundedNext?
Yes, within the same account. You can place both buy and sell orders on the same asset in one account. Hedging across multiple accounts is prohibited.
Can I hedge across two FundedNext accounts?
No. Buying on Account A and selling the same asset on Account B is prohibited, and opening several accounts to place offsetting trades is defined as group hedging.
Why does risking a full daily loss get flagged?
FundedNext can treat taking close to a full daily loss in one trade as a suspected multi platform hedge, so unusually large one-off risk draws scrutiny.
What happens if I hedge across accounts?
It is not considered a genuine trading strategy and can result in account termination.