Chicago, April 7, 2026 — Topstep has introduced a new real-time notification feature designed to help traders avoid accidental or intentional hedging violations across accounts.The update, which began rolling out this week in the TopstepX platform, detects when a trader holds opposing positions (long and short) on the same market across multiple accounts.
When the system identifies potential cross-account hedging, a modal notification pops up immediately, which you can see below. Traders then receive a brief window to reverse the hedge directly from the alert. If they successfully un-hedge within the allotted time, trading can continue without penalty. However, failing to act in time triggers automatic liquidation of the hedged positions.According to Topstep’s updated help documentation, consequences escalate with repeated offenses.
A first violation typically results in a flag, position liquidation, and a follow-up email. Subsequent violations on the same day can lead to a temporary trading prohibition for the rest of the session. Persistent hedging behavior may result in a permanent violation and account closure. The firm emphasizes that the policy aligns with real-market standards.
The changes come weeks after mass account closures due to the rule infraction
Cross-account hedging is prohibited because it does not reflect genuine market risk or skill — behavior that would be restricted by exchanges like the CME under rules against wash trading or non-competitive practices.Topstep states the new alert is meant to be helpful rather than punitive. “Hedging drama? Not anymore.” the company posted on X alongside the announcement.
The feature arrives amid ongoing trader discussions about hedging enforcement. Some users have reported past account flags for unintentional or very brief opposing positions, especially when using multiple accounts or automation tools.Traders are advised to monitor positions carefully, avoid trading the same instrument in opposite directions across accounts, and review Topstep’s full Terms of Use and prohibited conduct guidelines.
While Topstep makes updates to its platform regularly, this update is part of Topstep’s broader effort to prepare traders for live funded trading, where such practices are strictly monitored.
This move is ultimately in response to Topstep penalizing account hedging by nuking trader accounts who had committed the offense. On social media, it was not uncommon to see trading accounts with massive balances being forfeited to Topstep regardless of size. Hopefully, this feature implementation on Topstep X will help avoid this problem in the future. Bitter pill to swallow for those affected by the account closures, but with these safeguards in place, it doesn’t seem like it should happen again.
