Definition
Reverse Hedging:
A trading practice where a trader opens opposite positions on the same or correlated instruments
Often used to:
Offset losses artificially
Manipulate risk exposure
Bypass trading rules or limits
Restriction Policy
Reverse hedging is NOT allowed
What is Considered Reverse Hedging
Opening buy and sell positions simultaneously on the same asset
Opening opposing trades across:
Multiple accounts
Correlated instruments
Using hedging techniques to:
Avoid drawdown limits
Reduce visible losses temporarily
Risk & Compliance Issues
Rule Circumvention
Reverse hedging can be used to:
Bypass risk management rules
Hide true exposure
➡️ Violates fair trading conditions
Artificial Risk Management
Does not reflect genuine trading strategy
➡️ Creates misleading account performance
System Abuse
May involve:
Multiple accounts
Coordinated positions
➡️ Considered manipulative behavior
Rule Summary
Trading must be:
✔️ Transparent
✔️ Independently managed
✔️ Based on real market exposure
Any form of reverse hedging:
❌ Will be considered a violation
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