Risk & Compliance
Hedging Detection
Detecting cross-account opposite positions
Hedging Detection
Hedging detection identifies accounts holding opposite positions on the same symbol — one account long, another short. This is a common fraud tactic for guaranteed profits.
The Fraud Pattern
Here's how cross-account hedging works:
- Trader creates two accounts (usually different emails)
- Account A goes long EURUSD
- Account B goes short EURUSD
- Market moves in either direction
- One account profits, one loses
- The profitable account passes the challenge
- Repeat with new accounts
Result: Guaranteed winner every time, regardless of market direction.
What It Detects
The system flags accounts with:
- Opposite positions on the same symbol
- Similar timing (opened around the same time)
- Similar size (comparable lot sizes)
- Different users (different email addresses)
Why It's Different From Copy Trading
| Copy Trading | Hedging |
|---|---|
| Same direction trades | Opposite direction trades |
| Multiple accounts profit together | One profits, one loses |
| Signal sharing | Risk elimination |
| Both accounts might pass | One account sacrificed |
Hedging is often more deliberate fraud — they're explicitly gaming the system.
Reading the Flags
Each flag shows:
- Account A — login and position (e.g., "EURUSD Long")
- Account B — login and opposite position (e.g., "EURUSD Short")
- Symbol — the instrument being hedged
- Open Time — when positions were opened
- Size — lot sizes of each position
Investigation Steps
Open Compare Tool
Enter both account logins in the Compare Tool.
Check the Pattern
Look for:
- Repeated hedging — same accounts, multiple instances
- Timing — positions opened within minutes of each other
- Sizing — similar lot sizes (risk-balancing)
Check Account Details
- Different emails but same IP? → Likely same person
- Different emails, different IPs? → Could be coordinated group
- Any connection in names, phone numbers, KYC documents?
Check Outcomes
- Did one account profit and one lose? (Expected in hedging)
- Did the profitable one pass while the other breached? (Classic pattern)
Distinguishing Legitimate vs Fraud
Taking Action
If you confirm cross-account hedging:
Both Accounts Fail
This is coordinated fraud — both accounts should be failed.
- Account A → Manual Events → Rule Violation
- Reason: "Cross-account hedging detected with account [B login]"
- Repeat for Account B
Consider Blacklisting
Hedging is deliberate manipulation. Consider:
- Blacklisting both email addresses
- Checking if these users have other accounts
- Looking for patterns across your platform
Document Everything
Screenshot the Compare Tool results. Note:
- Both account logins
- Positions and timing
- Your reasoning
This protects you if they dispute.
Edge Cases
Prevention
Beyond detection, consider:
- Plan rules — explicitly forbid cross-account hedging in terms
- IP monitoring — flag same-IP accounts early
- KYC matching — catch duplicate identities