Hedging Prop Firm: Exploring the Best Firms That Support Hedging

Hedging is a popular risk management tool in trading, where it serves as an opportunity for traders to hedge against potential losses by going long and short at one time of an instrument. There are a lot of traders who want to use a hedging prop firm to be able to apply their strategy. Funded Elite does not currently support hedging but we seek to inform traders of all the various ways you can trade. Now we will have a look at some of the best hedging prop firms out there to look for when thinking of using one.

 

What is Hedging in Trading?

Hedging means opening several positions at the same time to limit exposure from the market movements. Trader hedges usually do one long and short position (or correlating asset positions) on similar assets. The idea is to minimize risk and still have access to profits if possible.

You could, for example, trade EUR/USD higher whilst at the same time trading a short GBP/USD to hedge the shock foreign exchange volatility in a brief period of time.

 

Best Prop Firms That Allow Hedging

If you’re looking for a hedging prop firm, consider these firms that support the strategy:

1. FTMO
   • Allows traders to hedge their positions.
   • Offers a two-step evaluation process.
   • Provides up to a 90% profit split.
2. The5ers
   • Supports hedging in both swing and regular accounts.
   • No time limit to reach profit targets.
   • Profit splits up to 95% for scaling traders.
3. My Forex Funds
   • Permits hedging for qualified traders.
   • Offers a one-step and two-step evaluation model.
   • High-profit split structure up to 90%.

   </ul style=”color:#a09dac”>

4. Blue Guardian
   • Allows full hedging capabilities.
   • Offers flexible trading rules.
   • Competitive evaluation model with no restrictions on strategy.

 

Key Considerations When Choosing a Hedging Prop Firm

When selecting a prop firm that supports hedging, keep the following in mind:

• Hedging Restrictions: Some firms may allow hedging but impose time limits or margin requirements.
• Leverage & Risk Management: Understanding the leverage provided will help in executing a hedging strategy effectively.
• Profit Splits & Scaling Plans: Higher profit splits and scalability options can significantly impact long-term profitability.
• Evaluation Process: A simple and fair evaluation process ensures traders can qualify for funded accounts efficiently.

 

Why Funded Elite Does Not Back Hedging

At Funded Elite, our mission is to ensure traders have a controlled and visible environment for an optimized experience.

We all agree that hedging is a great risk management tool but we are all about simple, disciplined trading methodologies that foster skill-building and profitable business over the long haul.

Instead of the traders hedging, we support traders to trying alternative risk management concepts like:-

Position Sizing: Size trades to control risk exposure to reasonable levels.

Stop Loss Strategies: These are strategies one should use for setting the stop losses at optimized levels in order to manage the risk effectively,

Diversification: Trading instruments with exposure in different markets so that the trader is not over dependent on 1 market.

Some prop firms have flexible trading rules and are structured to accommodate the need for hedging by traders who want to trade as a sub. Funded Elite does not offer hedging but we are proactively trying to help traders.

 

Join Funded Elite Today

Funded Elite offers one of the highest profit splits in the industry, a Second Chance Program, and flexible payment structures, making it an attractive choice for traders who want more capital and a transparent path to success. Traders can stay up to date with market developments by subscribing to our newsletters on either Facebook, X or Instagram.

What are you waiting for? Empower Your Trading Journey, Maximize and Realize Your Full Potential! Become a Funded Trader Today!