Prohibited Trading Practices Full Guide

To maintain a fair, stable, and transparent trading environment, the following trading strategies and behaviors are strictly forbidden:

What it is Using Expert Advisors (EAs), bots, or algorithms to open and close large volumes of trades within fractions of a second, exploiting tiny, short-lived price movements or gaps in data feeds.

Why it is not allowed HFT relies on speed and infrastructure rather than market analysis and can create unfair advantages, price manipulation, or instability. This restriction also covers latency arbitrage: exploiting delays between trade execution and market-data updates.

How it may appear

• Large numbers of trades opened and closed within fractions of a second.
• Automated systems targeting quote delays, short-lived price discrepancies, or feed timing rather than a market view.

Examples

• An EA fires more than 50 trades per minute on EUR/USD, with each trade closed within a fraction of a second to target sub-pip discrepancies between the platform feed and a faster external feed.
• A bot identifies recurring feed delays and systematically enters trades before the delayed price updates.

Important clarification An isolated trade that closes unusually quickly does not, by itself, establish an HFT strategy. A repeated speed- or latency-based approach is the concern.

What it is Opening and closing trades within a very short window (2 minutes or below), aiming to capture tiny price fluctuations rather than trading a genuine directional view.

Why it is not allowed Tick scalping relies on market noise rather than analysis or a defined strategy. It can be carried out manually or through automated tools.

How it may appear

• Repeated entries and exits in two minutes or less.
• Small and frequent targets driven by minor price flickers.

Examples

• 10:00:00 — Buy 1.00 lot EUR/USD; 10:01:35 — close for a 3-pip profit. Repeating these short-duration trades based on minimal price movement constitutes prohibited tick scalping.
• A trader repeatedly opens trades targeting one or two pips, closing each after a few seconds without a broader market rationale.

Important clarification A single position closing within two minutes because its stop-loss or take-profit was reached unexpectedly is not necessarily evidence of a tick-scalping strategy. Trading patterns and circumstances are relevant.

What it is Placing opposing buy and sell positions on the same instrument, within one account or across multiple accounts belonging to the trader or coordinated with others, to offset market exposure or create a risk-free outcome.

Why it is not allowed Opposing positions can shift losses to one account while generating profits in another, creating an arbitrage-style arrangement rather than genuine market risk-taking.

How it may appear

• Matching or closely timed opposite-direction positions on the same instrument.
• Coordinated buying and selling between separate accounts or traders.

Examples

• Account A buys GBP/USD while Account B, operated by the same trader or a coordinated associate, sells an equal-sized GBP/USD position at the same time.
• A trader opens a sell position on the same instrument to offset an existing buy position rather than closing the original exposure.

Important clarification Unrelated positions in separate markets that happen to perform differently are not, by themselves, proof of coordinated hedging. The prohibited conduct concerns opposing positions deliberately arranged to offset risk.

What it is Increasing position size after a loss on the same losing trading idea, in an attempt to recover previous losses with one eventual winning trade.

Why it is not allowed This method may require progressively more capital during losing streaks and can rapidly breach the fixed drawdown limits of a trading account.
How it may appear

• Increasing lot sizes after consecutive losses or adverse price moves.
• Doubling or otherwise escalating exposure to defend the same losing trade idea.

Examples

• A trader buys 0.50 lots of USD/JPY, then adds 1.00 lot and 2.00 lots as the trade moves against them, attempting to recover all losses through one reversal.
• After a losing gold trade, a trader repeatedly re-enters in the same direction with increasingly larger lot sizes solely to recover the prior loss.

Important clarification The prohibition concerns loss-driven increases in exposure. Describing a strategy as “planned” does not exempt a martingale-style increase after a loss.

What it is Adding to an existing losing position as price moves further against the original entry, whether the added positions use the same or different lot sizes, in the hope of a reversal.

Why it is not allowed Additional exposure to a losing position increases drawdown risk if the market does not reverse and can substitute hope for a defined exit plan.

How it may appear

• Additional positions in the same direction while the original trade remains open and in a floating loss.
• Multiple entries that increase exposure as price moves against the initial entry.

Examples

• Buy 1.00 lot EUR/USD at 1.1000; with the first position still losing, buy another 1.00 lot at 1.0980 and again at 1.0960.
• A trader holds a losing oil buy position and adds another buy each time oil falls further to reduce the average entry price.

Important clarification Opening a new, independently assessed trade after the original losing position has been closed is different from adding to an existing floating loss. Other applicable rules still apply.

What it is Adding to an existing losing position as price moves further against the original entry, whether the added positions use the same or different lot sizes, in the hope of a reversal.

Why it is not allowed Additional exposure to a losing position increases drawdown risk if the market does not reverse and can substitute hope for a defined exit plan.

How it may appear

• Additional positions in the same direction while the original trade remains open and in a floating loss.
• Multiple entries that increase exposure as price moves against the initial entry.

Examples

• Buy 1.00 lot EUR/USD at 1.1000; with the first position still losing, buy another 1.00 lot at 1.0980 and again at 1.0960.
• A trader holds a losing oil buy position and adds another buy each time oil falls further to reduce the average entry price.

Important clarification Opening a new, independently assessed trade after the original losing position has been closed is different from adding to an existing floating loss. Other applicable rules still apply.

What it is Allowing another person, team, paid service, friend, or automated service acting on someone else’s decisions to trade the account on the holder’s behalf.

Why it is not allowed The account must be traded by its registered holder, using that trader’s independent decision-making. Payment to the third party is not a requirement for this rule to apply.

How it may appear

• Another person logging into the account and executing trades.
• An external management service making and executing trading decisions.

Examples

• The account holder pays a professional manager to place trades during working hours.
• The holder gives a friend account access and lets that friend manage positions without payment.

Important clarification Discussing general market ideas with other people is distinct from delegating the account’s trading decisions or execution to them.

What it is Mirroring or duplicating another trader’s positions onto an account, either manually or through copy-trading software or an automated tool.

Why it is not allowed Mirrored trades do not demonstrate independent analysis and decision-making by the account holder.

How it may appear

• Matching another trader’s entries, exits, timing, and position sizes.
• Using master-account or signal-provider copying services.

Examples

• A trader connects the account to a copy-trading platform that automatically duplicates a signal provider’s positions.
• A trader repeatedly watches another trader’s live entries and manually duplicates them without independent analysis.

Important clarification Learning from public market commentary is different from systematically mirroring another trader’s execution. The account holder must make independent trading decisions.

What it is Placing a preset sequence of buy and sell orders at fixed price intervals above and below the current price, forming a grid irrespective of directional analysis.

Why it is not allowed The mechanical, interval-based arrangement may be used for arbitrage-style outcomes rather than genuine directional market participation.

How it may appear

• Multiple orders positioned at regular, predetermined price intervals.
• Orders triggered automatically as price moves through the grid.

Examples

• A trader places pending Buy orders every 20 pips below the current gold price and Sell orders every 20 pips above it.
• An EA automatically places additional orders at every fixed interval as the market moves up and down.

Important clarification Orders independently placed at distinct, analytically identified levels are not necessarily a grid. A preset, repeated interval structure is the relevant indicator.

What it is Using technical flaws such as erroneous prices, stale quotes, latency gaps, or data-feed failures to obtain trading results, whether deliberately identified or repeatedly exploited after discovery.

Why it is not allowed Profits derived from technical errors rather than genuine market conditions do not demonstrate trading skill and can compromise platform integrity.

How it may appear

• Repeated trading around known server or quote errors.
• Deliberately entering trades at mispriced or delayed quotes.

Examples

• A trader notices that a server issue causes the platform quote to lag the market by several seconds and repeatedly exploits that delay.
• A trader repeatedly enters at an obviously erroneous instrument price before the feed corrects.

Important clarification If a suspected platform flaw is discovered, stop exploiting it and contact support. An isolated accidental interaction should be reviewed in context.

What it is Using automated tools to open multiple positions simultaneously across instruments or accounts without actively overseeing or managing each trade.

Why it is not allowed Large batches of unattended trades do not reflect the trader’s direct, reasoned management of individual positions in real time.

How it may appear

• Automated scripts placing numerous trades on receiving a signal.
• Simultaneous orders across symbols or accounts with no individual trade review.

Examples

• A webhook triggers a script to open 15 trades across different currency pairs simultaneously without any manual review.
• An unattended tool receives an external alert and immediately opens multiple positions across several accounts.

Important clarification Using automation for an individual trade does not automatically establish this violation; the concern is automated, simultaneous multi-trade activity without active oversight. All other EA and trading restrictions continue to apply.

What it is Opening positions with lot sizes disproportionately large relative to account size, especially around market opening or closing times or high-impact news, resulting in unrealistic risk exposure.

Why it is not allowed Oversized exposure can indicate reckless risk-taking rather than disciplined trading and may be used to attempt to achieve profit targets in a single trade.

How it may appear

• Positions whose risk is disproportionate to account equity or applicable drawdown limits.
• Abruptly oversized orders around volatile or illiquid market periods.

Examples

• A trader opens a 5.00 lot GBP/USD position on a $10,000 account at market open, exposing the account to a large potential loss.
• A trader suddenly places a position vastly larger than their normal size immediately before a major market event.

Important clarification No fixed lot-size-to-balance threshold is specified in this guide. Exposure should be evaluated in context, including instrument, stop-loss, and account risk.

What it is Intentionally exploiting price gaps between Friday’s market close and the market reopening on Sunday or Monday, including entering trades shortly before closure or setting pending orders specifically to profit from anticipated gaps.

Why it is not allowed Weekend price gaps may cause orders to execute at the next available market price rather than the requested stop-loss or take-profit level. Traders who hold positions over the weekend accept this risk and remain responsible for resulting losses or drawdown violations.

How it may appear

• Opening late-Friday positions specifically to capture the expected opening gap.
• Placing pending orders designed primarily to profit from the next weekend opening gap.

Examples

• A trader buys EUR/USD shortly before Friday’s close solely because they expect a higher Sunday opening price, then exits immediately after the gap.
• A trader sets pending orders shortly before the weekly close specifically to catch a price jump when the market reopens.

Important clarification Keeping a position open over the weekend is not automatically described as prohibited. The rule targets intentional gap exploitation. Following review, identified violations may result in removal of associated profits, payout rejection, or account termination.