Hedging or executing reverse trades within a single account is permissible. Straddling news events, however, is prohibited.
However, executing a buy trade on one account and a sell trade on another account is prohibited. This violates the rule against reverse trading or hedging across multiple accounts.
Group hedging involves individuals coordinating opposing positions across one or multiple prop firms to manage risk and exploit prop firm rules. This practice is also prohibited.
hedging, group trading, reverse trading, prohibted trading practice
Written by MVFunded Ltd
Updated over a month ago