Summary
At MegaTrader, our goal is to fund disciplined, consistent traders who demonstrate sustainable strategies. To ensure fair and transparent trading across both evaluation and funded stages, we enforce strict rules regarding hedging and contract type usage.
What Is Hedging and Why It’s Not Allowed
Hedging refers to taking opposing positions on the same or correlated instruments simultaneously. This includes scenarios such as:
Going long on ES while shorting MES
Holding both a buy and sell on NQ
Using one trade to offset risk from another
Hedging is not permitted on any MegaTrader account because it:
Undermines trader consistency
Does not reflect real-world capital risk behavior
Can be used to manipulate or exploit the evaluation environment
Applies to: All account types, including Challenges and Sim Funded accounts.
Violations may result in:
Account failure
Disqualification
Loss of funded status
One Instrument Type at a Time: Micros vs. Minis
To avoid cross-exposure and manipulation of risk models, traders may not trade both mini and micro contracts on the same instrument at the same time.
Examples:
Allowed: Trade only ES, or only MES
Not allowed: Trade ES and MES simultaneously
Allowed: Switch from micros to minis in a new session, provided prior positions are closed
You must choose one instrument type per session, not both at once.
How We Monitor This
MegaTrader’s system automatically detects:
Contradictory trades (hedging)
Cross-instrument exposure (e.g., long ES and short MES)
Mixed contract usage (e.g., NQ and MNQ held at the same time)
When violations are found, accounts are flagged and reviewed. Consequences may include:
Immediate account failure in the Challenge
Loss of payout eligibility
Termination of Sim Funded status
Need Help?
If you have questions about approved instruments, risk limits, or trading practices, contact us at [email protected] or open a live chat inside your portal.