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Understanding Hedging

What counts as hedging, how warnings and liquidations work, and how it affects payouts.

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Written by Ultra Future Funding

Hedging is prohibited at Ultra Future Funding.

What Counts as Hedging

  • Holding a long position and a short position in the same or correlated instrument at the same time — for example ES and MES, or NQ and MNQ

  • Across any of your accounts, or across accounts with other traders

  • Even if the overlap is brief or unintentional

To change direction, flatten your position first, then enter the new trade.

What Happens

Situation

Result

First hedge

Warning. If not closed promptly, the hedged positions are liquidated and the account is flagged. You may keep trading.

Repeat hedge the same day

Hedged positions are liquidated.

Next trading day after a warning

You must acknowledge the hedging policy before you can trade.

Hedging after acknowledgment

Immediate liquidation, no warning.

Excessive hedging

Immediate liquidation, no trading for the rest of the day on the hedged accounts, and possible permanent closure without further notice.

Payouts

A warning alone does not affect payouts. Accounts closed for hedging are not eligible for payouts, and profits on those accounts cannot be withdrawn.

Final Decisions

Confirmed hedging violations are final. Accounts closed for hedging cannot be reopened.

Copy Trading

Copying trades across your own accounts in the same direction is allowed. Copying, coordinating, or mirroring trades with other people is prohibited.

Governing Terms

This article summarizes our policies. The Ultra Future Funding Terms of Service control if there is any difference. Ultra Future Funding is a Wyoming limited liability company, and the Terms of Service and these policies are governed by the laws of the State of Wyoming, United States.

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