Hedging is not permitted on The Prop Pit. You may not hold opposing positions in the same or correlated instruments on any Prop Pit account. This page explains our no-hedging policy.
What Is Hedging?
Hedging means opening a position that offsets the risk of another open position. For example, going long ES and short NQ simultaneously, or holding a long stock position while buying a protective put option.
Our No-Hedging Policy
- Hedging is not allowed on any Prop Pit account.
- You may not hold simultaneous long and short positions in the same instrument.
- Cross-instrument hedging (e.g., ES vs NQ, stock vs option) is not permitted.
- Hedging across multiple Prop Pit accounts is not allowed.
All forms of hedging are prohibited. This includes same-instrument, cross-instrument, and cross-account hedging. Violations are flagged automatically by our risk monitoring systems and may result in account suspension.
Hedging Across Accounts
You may not use multiple Prop Pit accounts to create opposing positions as a hedging strategy. Each account must be traded independently with its own directional strategy. Cross-account hedging is flagged by our risk monitoring systems and will result in account review.
Why We Don't Allow Hedging
- Hedging can be used to artificially manipulate drawdown and profit metrics.
- It does not demonstrate genuine trading skill or directional conviction.
- Our risk and evaluation systems are designed to assess real, unhedged performance.