How Hedging Works in Trading
Example: A trader goes long on EUR/USD while simultaneously opening a short position on EUR/USD to hedge against short-term price fluctuations.
This strategy can reduce exposure to unpredictable market movements while allowing traders to capitalize on favorable conditions.
Hedging Rules & Compliance
✅ Hedging is Allowed, but traders must still comply with:
Daily and total drawdown limits – Hedging does not exempt traders from risk rules.
Position sizing guidelines – Ensure trades remain within permitted lot sizes.
Proper risk management – Overhedging or excessive leverage can still lead to breaches.
Things to Keep in Mind When Hedging
Monitor both sides of the hedge to avoid unintended rule violations.
Avoid excessive hedging that locks in trades without a clear risk management plan.
Ensure your hedge positions align with your overall trading strategy rather than being used to bypass risk parameters.
Atlas Funded provides flexibility for traders to use hedging as a risk management tool while maintaining compliance with account guidelines. If you have any questions about hedging rules, feel free to contact Atlas Funded support for clarification.