Source: https://whitepips.com/blog/hedging-on-a-prop-account Summary: What the WhitePips rules allow and prohibit on hedging: inside one futures account, opposite positions across accounts, and what the CFD rules say. Last updated: 2026-10-28 # Hedging on a prop account: what is allowed What the WhitePips rules allow and prohibit on hedging: inside one futures account, opposite positions across accounts, and what the CFD rules say. - October 11, 2026 - 7 min read - 6 sections - Risk **In this article 6** 1. What counts as hedging? 2. Is hedging allowed inside one futures account? 3. Why is hedging across accounts prohibited on futures? 4. What do the CFD rules say about hedging? 5. Where does copying your own trades fit? 6. What about trading with other people? Back to top October 11, 2026 7 min read Risk ## In short - **Futures, one account:** a long and a short on the same contract in mini and micro, or on two different contracts, is allowed. Both legs count toward the Maximum Position Size. - **Futures, across accounts:** opposing positions on the same or correlated contracts across separate accounts, yours or anyone else's, is prohibited and goes to the risk desk. - **CFDs:** opposite-direction hedging across accounts, and hedging against an account at another firm, broker or exchange, is prohibited on all accounts. The CFD rules contain no separate rule on hedging inside one account. - **Copying:** copying your own trades, in the same direction, between your own accounts in the same product line is allowed. On WhitePips futures accounts, hedging inside one account is allowed: a long and a short on the same contract where one side is mini and the other micro, or long and short on two different contracts. Hedging across accounts is prohibited on every plan, futures and CFD alike, whether the other account is yours, someone else's or held at another firm, broker or exchange. What decides it is whether the offsetting positions sit in one account or are spread across several. ## What counts as hedging? A hedge is a position taken to offset the risk of another. Long 2 NQ and short 10 MNQ is a hedge: the short gives back half of what the long makes or loses. Inside one account that is risk management, a way to reduce a position without closing it. Spread across two accounts, the same pair does something different. It makes one account gain whichever way the market moves, at the expense of the other. A prop account is judged by its own result, so a pair like that can turn one account's loss into another account's pass without any view of the market at all. That is why the rules treat the two cases so differently. ## Is hedging allowed inside one futures account? Yes. Section 20.7.4 of the [trading rules](https://whitepips.com/legal/trading-rules) says hedging within a single futures account as part of a normal trading strategy is permitted, and names two forms: - A long and a short position on the same contract in one account, where one position is in mini contracts and the other in micro contracts: long NQ and short MNQ, for example. - Long and short positions on two different contracts in one account: long ES and short NQ, for example. Every other rule still applies to both legs. The Maximum Position Size counts the contracts open at the same moment, and both sides of a hedge are open contracts. The Daily Loss Limit and the Maximum Loss Limit measure the account as a whole, open positions included. **Worked example, $50K One Step, cap 4 Mini | 40 Micro.** Long 2 NQ and short 10 MNQ in the same account: - Contracts open: 2 minis plus 10 micros, which is 3 minis of the 4 allowed. - Net exposure: 2 NQ at $20 a point is $40 a point long; 10 MNQ at $2 a point is $20 a point short. The account is $20 a point long, the same as holding one NQ. - If the Nasdaq rises 40 points, the longs make $1,600 and the shorts lose $800: net +$800. If it falls 40 points, net −$800. The hedge leaves the account with the risk of one NQ while using three minis of the cap. That can be a sensible trade-off when you are reducing a position you intend to keep. It is a poor one when the hedge exists only to avoid taking a loss, because the loss is still there, and the hedge does nothing to stop the net position from moving against you. The same section of the rules permits martingale on futures, whether by increasing size on a new trade after a loss or by adding to a losing position, within the account's Maximum Position Size, Daily Loss Limit and Maximum Loss Limit. Aggressive sequences that create excessive exposure may be reviewed as Gambling Behaviour and Account Rolling. ## Why is hedging across accounts prohibited on futures? Section 20.7.4 continues: hedging across separate accounts is prohibited. You may not hold opposing positions on the same contract, in mini or micro contracts, or on different but correlated contracts, across separate accounts, whether they are your own accounts or held in coordination with other traders. In the table of prohibited strategies on futures accounts it appears as Hedging Across Accounts and Platforms: placing opposing positions across multiple accounts, whether personally owned, held by another trader, or held at another proprietary trading firm, with the intent to offset or negate market risk. **The problem in numbers.** Take two $50K One Step evaluations, each with a $2,000 Maximum Loss Limit and a $3,000 profit target. Long 1 NQ on the first, short 10 MNQ on the second. If the Nasdaq rises 100 points, the first account makes $2,000 and the second loses $2,000, its whole Maximum Loss Limit. One account is breached and the other is two thirds of the way to its target. Had the market fallen, the result would simply have been the mirror image. The market view did not matter; only the pairing did. The consequence on futures: the case goes to manual review by the WhitePips risk desk first. This can result in a warning, profit removal, payout denial, account suspension, evaluation failure, funded account termination, or a permanent platform ban. The whole futures list is set out in plain words in the [futures FAQ](https://whitepips.com/faq-futures) . ## What do the CFD rules say about hedging? For CFD and Instant accounts, section 15.1 of the trading rules prohibits, on all accounts, “coordinated trading, group hedging, or opposite-direction hedging across multiple accounts to guarantee an outcome”. Section 15.2 adds “hedging or arbitraging a WhitePips account against an account held with another proprietary trading firm, broker or exchange”. Section 11.6 prohibits on every plan opening positions shortly before a scheduled release, a market close or a weekend with the main purpose of profiting from the gap, particularly with positions sized far beyond your usual trading or with opposite positions on different accounts. The Terms of Service say the same in section 15.3: you must not take positions on a trading account that offset, hedge or arbitrage positions on another account, whether that account is yours, belongs to someone else, or is held with another proprietary trading firm, broker or exchange, including opposite trades designed so that one account passes or profits whichever way the market moves. What the CFD rules do not contain is a rule about a long and a short on the same symbol inside one CFD account. They do not list it as prohibited, and they do not publish it as permitted in the way section 20.7.4 does for futures. If a method depends on it, ask support before relying on it. One opposite-position practice inside an account is named in the rule explanations: straddling, which is opening positions in both directions on the same or a correlated instrument within 15 minutes either side of a high-impact release to catch the spike. It is reviewed by the risk desk. The futures table has its own version, News Straddling Around Tier 1 Data Releases, which also goes to manual review first. Where conduct that may breach the rules is found on any account, section 16 applies: the account may be placed into a manual review state, and during the review progression to a new stage, payout requests and new purchases may be paused, and in serious cases trading may be suspended. If a breach is confirmed, the outcomes include exclusion of the affected trades, strikes, closure and recovery of payouts. Where no breach is found, the account is released and continues normally. ## Where does copying your own trades fit? Copying is the same-direction case, and it is allowed for your own trading. Under section 13.4, a trade copier may copy your trading between accounts you own and trade yourself, within the same product line (CFD with CFD, futures with futures), or from a master account you genuinely own, trade and control, including one held with another broker or proprietary trading firm. Copying a long onto another of your accounts as a long is fine. Taking the opposite side on the second account is hedging across accounts, which is not. The post on [expert advisors and copy trading](https://whitepips.com/blog/expert-advisors-and-copy-trading-on-funded-accounts) covers the copier rules in more detail. ## What about trading with other people? Hedging with someone else is covered twice. Section 15.4 of the Terms of Service prohibits coordinating trading with other people, sharing risk or outcomes with them, or trading as part of a group that places the same or opposing trades across different customers' accounts. On futures, Coordinated and Group Trading is a separate line in the prohibited-strategies table, also reviewed by the risk desk first. A friend taking the other side of your trade on their own account is the same pairing as above, with two traders instead of one. A hedge reduces risk; it does not remove it, and leveraged trading can lose money either way. The plain-words version of every rule is on the [trading rules explained](https://whitepips.com/rules) page. More in Risk [Leverage and margin on a funded account](https://whitepips.com/blog/leverage-and-margin-on-a-funded-account) [Risk-reward and win rate: the maths of passing](https://whitepips.com/blog/risk-reward-and-win-rate) [What happens when you break a prop firm rule](https://whitepips.com/blog/what-happens-when-you-break-a-rule) [Read next MT5 expert advisors and copy trading on a funded account Risk · 8 min read](https://whitepips.com/blog/expert-advisors-and-copy-trading-on-funded-accounts) Educational content, not financial advice. Trading carries risk and most people who attempt an evaluation do not pass it. Accounts are simulated; the rules that bind yours are the ones printed on your plan and in the trading rules. [All articles](https://whitepips.com/blog) ## Related articles Risk October 6, 2026 8 min read ### MT5 expert advisors and copy trading on a funded account Your own EA on MT5 is allowed on every CFD plan, and so is copy trading between your own accounts. 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