in order to take more than 1 hop – you must have kerberos setup
to check if it is – run this:
select auth_scheme from sys.dm_exec_connections where session_id=@@spid
if it is running ntlm – you can only take 1 hop
for example – if you are connecting to a sql server instance on one server and want to link to another server from your computer, you will need kerberos.
if you want to link from one server to another and are on one of the servers, then you can use ntlm