Skip to main content

Rules: Hedging & Correlated Products

Hedging rules: no opposing positions on the same instrument or correlated products, in one account or across multiple accounts. Product Group table, mini/micro contract policy, and violation consequences.

Tradeify prohibits hedging. You cannot hold opposing positions — one long, one short — on the same instrument or on two products from the same Product Group, whether those positions sit in a single account or are spread across several of your accounts.

Applies to: All Tradeify account types (Evaluation, Sim Funded, and Elite Live)

⚠️ Important: Hedging Across Multiple Accounts Is a Violation

Holding a long position on one account and a short position on another account is a hedging violation. It does not matter whether the accounts are Evaluation or funded, and it does not matter whether one leg is a mini and the other a micro.

  • Long ES on Account A + Short ES on Account B = VIOLATION (same instrument)

  • Long ES on Account A + Short NQ on Account B = VIOLATION (both are Equity Index products)

  • Long MES on Account A + Short NQ on Account B = VIOLATION (contract size is irrelevant)

A hedging violation results in every account involved being set to violation status, forfeiture of any profits generated during the period of the violating activity, and possibly a permanent ban from Tradeify.

Why This Rule Exists

Tradeify funds disciplined, consistent traders who demonstrate sustainable strategies. Hedging masks real risk exposure and makes it impossible to evaluate genuine trading skill. Spreading the two sides of a hedge across separate accounts is the same behaviour with an extra step — one account books a profit while the other absorbs the loss, and neither result reflects a tradable edge.

These rules keep real-world capital risk accurately reflected, so that funding decisions and payouts are based on performance rather than on offsetting positions.

What Counts as Hedging

A hedging violation occurs when you hold opposing positions at the same time in any of the following ways:

  • Same instrument: Long ES and Short ES held at the same time.

  • Same Product Group: Long ES and Short NQ. Both are Equity Index products, so opposing directions across them is a hedge.

  • Any contract size: Long MES and Short NQ. A mini leg and a micro leg still form a hedge — size does not exempt the position.

  • Across accounts: Any of the above, with each leg held on a different account under your control.

Product Groups

Every product Tradeify supports belongs to a Product Group. Holding a long position in one product and a short position in another product from the same Product Group at the same time is a hedging violation, in one account or across any of your accounts.

Product Group

Symbols

Equity Index

ES, MES, NQ, MNQ, YM, MYM, RTY, M2K, EMD, NKD, FDAX, FDXM, FDXS, FESX, FSXE, FXXP

Energy

CL, QM, MCL, NG, QG

Metals

GC, QO, MGC, SI, HG, PL, PA

Currencies

6E, M6E, 6B, 6J, 6A, M6A, 6C, 6S

Interest Rates

FGBL, FGBM, FGBS, FGBX

Grains

ZS, ZL, ZM, ZC, ZW

Livestock

HE, LE, GF

Volatility

FVS

Mini and micro versions of a product always belong to the same Product Group. ES and MES are the same product for the purposes of this rule, as are NQ and MNQ, GC and MGC, and every other mini/micro pair.

Volatility products move inversely to equities, so holding a long Equity Index position and a long Volatility position at the same time is also treated as offsetting. This list is not exhaustive — Tradeify may treat any other position it determines to be offsetting as a hedge.

What IS Allowed

The deciding factors are direction and Product Group — not contract size. These are all permitted:

  • Long ES + Long NQ = ALLOWED (same direction)

  • Long ES + Long MNQ = ALLOWED (same direction, mini and micro may now be held together)

  • Long MES + Long MNQ = ALLOWED (same direction)

  • Long ES + Short CL = ALLOWED (opposing directions, but Equity Index and Energy are different Product Groups)

  • Long GC + Short ZC = ALLOWED (Metals and Grains are different Product Groups)

  • Long ES on Account A + Long ES on Account B = ALLOWED (same direction across accounts — this is how copy trading works)

You can trade the same markets on more than one account. What is prohibited is holding them in opposite directions at the same time.

Trading Minis and Micros Together

Minis and micros may now be held at the same time. Tradeify previously prohibited holding MINI and MICRO contracts simultaneously, because the platform allowed traders to exceed their contract limit by combining the two. That gap has been closed by broker-side contract fungibility, so the standalone restriction no longer applies.

Two things still apply:

  • Your combined position must stay within your account's contract limit, counted at 10 micros = 1 mini.

  • A mini and a micro held in opposing directions on the same or a correlated product is still a hedging violation. Long MES + Short NQ is prohibited — not because of contract size, but because it is a hedge.

Multiple Accounts

This rule applies across ALL accounts under your control, not just within a single account. Our monitoring systems track positions across every account linked to the same trader.

You cannot:

  • Go long on one account and short on another account on the same instrument

  • Go long on one account and short on another account on a different product from the same Product Group

  • Use a mini on one account and a micro on another to disguise an opposing position

  • Use multiple accounts, or accounts held by other people at your direction, to circumvent this rule

Violations can also occur when activity in a failed account overlaps with an active one. Trading in a failed account while an active account holds an opposing position can trigger the hedging alert.

If you trade more than one account, flatten positions in one account before opening an opposing position in another. Confirm your symbols before entering, and check that all accounts are flat before starting a new session.

Consequences of Violations

Violations are detected automatically and reviewed by our risk team. Consequences may include:

  • Disqualification (for Evaluation accounts)

  • Payout denial

  • Account set to violation status

  • All involved accounts set to violation status, for cross-account violations

  • Forfeiture of profits generated during the period of the violating activity

  • Permanent ban from Tradeify, for deliberate or repeated violations

Automated Hedging Detection

All Tradeify accounts have automated hedging detection — Evaluation, Sim Funded, and Elite Live. An account is breached by this automated check only if all three of the following conditions are met simultaneously:

  1. Opposing positions exist (hedging behaviour)

  2. The hedge duration exceeds 10 seconds

  3. Profit generated from the hedge exceeds $250

The 10-second window exists so that a trader who opens an opposing position by mistake can close it without penalty. It is not an allowance to hold a hedge briefly on purpose.

Cross-account hedging and hedging across correlated products are monitored separately and reviewed by our risk team.

Frequently Asked Questions

Q: Can I go long ES on one account and short NQ on another?

A: No. ES and NQ are both Equity Index products, so holding them in opposite directions is a hedging violation — even when the two positions sit on separate accounts.

Q: Can I hold minis and micros at the same time?

A: Yes. This is now allowed, as long as your combined position stays within your contract limit (10 micros = 1 mini) and the two positions are not in opposing directions on the same or a correlated product.

Q: I have multiple accounts. Do these rules apply across all of them?

A: Yes. Hedging rules apply across ALL accounts under your control. Our systems monitor positions across every account linked to you.

Q: Can I trade the same instrument on more than one account?

A: Yes, as long as the positions are in the same direction. Copy trading is permitted. What is prohibited is holding the same or a correlated product in opposite directions at the same time.

Q: How do I know whether two products are correlated?

A: Check the Product Groups table above. If both products appear in the same group, opposing positions across them are prohibited.

Q: What happens if I accidentally violate these rules?

A: Violations are detected automatically and reviewed by our risk team. Close the opposing position as soon as you notice it. If you believe a violation was caused by a platform error, contact support immediately.

Did this answer your question?