Opposite Direction Trades: What You Need to Know

Overview

Placing trades in opposite directions (long and short) on the same product at the same time across one or more funded accounts is strictly prohibited.

This practice is a direct violation of CME Group Rule 534 and may result in immediate and permanent account termination by your brokerage. No exceptions are made.

What Are Opposite Direction Trades?

Opposite direction trading refers to entering both a buy (long) and sell (short) position on the same instrument at the same time in:

A single account, or
Multiple accounts held by the same trader

Example:
Opening a long position on the E-mini S&P 500 (ES) in one funded account, while simultaneously opening a short position on the same product in another funded account.

This activity is classified as self-hedging or wash trading, and is prohibited under CME rules.

Why Is This Prohibited?

The CME Group prohibits this practice under:

Rule 534 – Wash Trades Prohibited
Rule 575 – Disruptive Practices Prohibited

These rules exist to protect market integrity by preventing traders from creating artificial market activity or misrepresenting true supply and demand.

Consequences of Violation

Violating these rules may result in:

Permanent closure of your brokerage account
Loss of funded status
Reporting to regulatory authorities
Potential fines or sanctions

Brokerages are required to enforce CME compliance without exception.

Helpful Resources

For more details, please review:

CME Rule 534 – Wash Trades Prohibited
CME Rule 575 – Disruptive Practices Prohibited

Final Reminder

At Halcyon Trader Funding, we strictly follow exchange rules. Always trade with transparency and integrity. If you are ever unsure whether a trading action is allowed, contact our support team before placing the trade.