Hedging & Arbitrage

Hedging and arbitrage have specific rules on NEOM Funded. Some forms are allowed, others are not.

Internal hedging (within one account)

• Opening opposite positions on the same instrument within your own single account is generally allowed as part of a legitimate strategy

• It must not be used to lock risk artificially to bypass Daily Loss or Max Loss limits

• It must not be used to game consistency or profitable-days rules

Cross-account hedging — NOT ALLOWED

• Opposite positions across two or more of your own accounts (e.g., long EURUSD on Account A, short EURUSD on Account B)

• Hedging with a friend, group, or any third-party account

• Coordinated exposure where one account's loss funds another account's reward

• This applies whether the accounts are on NEOM Funded or on another prop firm

Arbitrage — NOT ALLOWED

• Latency arbitrage against our liquidity or pricing

• Arbitrage between NEOM Funded and another broker/prop firm

• Arbitrage between your accounts

• Triangular or statistical arbitrage strategies designed to exploit feed differences

Why these rules exist

Cross-account hedging and arbitrage transfer risk to NEOM Funded without genuine trading skill. They exploit the simulated environment rather than demonstrate it.

What happens if you breach

Same proportionate ladder as C4: warning → trade exclusion → suspension → termination → ban → clawback. Cross-account hedging and arbitrage are treated as serious breaches.

Important

• All activity is on simulated capital

• If your strategy involves any form of hedging, check with [email protected] before scaling it

• When in doubt, don't

This article is for guidance only and does not modify the NEOM Funded Terms and Conditions, Plan Specification, or Refund Policy.