Hedging

1 min. readlast update: 07.21.2025

What is Hedging?

Hedging is a strategy where traders open both long (buy) and short (sell) positions on the same instrument simultaneously. This approach is used to reduce exposure to market volatility and help manage potential losses during unpredictable price movements.

Can I hedge my trades?

Hedging is permitted only within a single trading account. Hedging across multiple Sway Funded accounts is not allowed. 

However, you may copy hedge trades through a personal broker and transfer them to our prop firm. 

What happens if I try to hedge trade using multiple Sway Funded accounts?

Hedging across multiple accounts, challenges, or profiles (whether linked or not) is not allowed. Our automated system detects this activity, flags it as a violation, and will block the involved accounts pending investigation. 

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