Hedging On The Same Pair

Hedging means having a buy and a sell open on the same market at the same time. FundedCobra allows many trading styles, but not this one.

What is the Rule?

You can't have a Buy and a Sell open on the same instrument at the same time.

If you have an open Buy trade on US30, you can't open a Sell trade on US30 until the Buy trade is closed. One direction per pair.

Trading many different pairs at the same time is completely fine.

What happens if I do it?

Hedging the same pair ends your account.

Why do we have this rule?

Traders often hedge one market to avoid the Daily Drawdown limit (daily loss limit) instead of controlling risk. In a live market, a buy and a sell on one pair cost swap and margin on both sides, and the two trades cancel each other out. It is not a strategy. It only delays the result.

"Group Hedging" means buying on one account and selling the same thing on another. We treat this as fraud, because one account is set up to pass at the cost of the other.

Example Scenarios

Scenario A: Not allowed

• You have an open Buy of 1 Lot on GBPUSD.
• The market drops. To "lock" the loss without closing, you open a 1 Lot Sell on GBPUSD.
• Result: You have a Buy and a Sell at once on GBPUSD. Your account ends here.

Scenario B: Allowed (different pairs)

• You have an open Buy on EURUSD.
• You open a Sell on GBPUSD.
• Result: Allowed. These are different pairs, so this is a normal strategy, not hedging.