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Are there types of trading that are prohibited?

Yes, the following trading styles and practices are prohibited:

  • Grid trading;
  • HFT (tick scalping)*;
  • Arbitrage;
  • Automatic third-party trading systems/bots and order management systems, different from the standard ones that are provided by our supported platforms;
  • Flipping**;
  • Hedging (see Is hedging allowed?);
  • Coordinated or group trading with another trader, including acting in concert through connected or unconnected accounts to perform the same or an opposite strategy or to pool or hedge aggregate risk (see Can I trade together with, or coordinate my trades with, other traders?).

* We define HFT / tick scalping as the repeated, systematic use of trades below our minimum acceptable thresholds — at least 2 ticks of profit per positive position, or a minimum holding time of 1 second. Occasional individual trades below these thresholds are tolerated: the rule targets repeated and systematic use, defined as three or more such trades within a single day, each held for one second or less.

** "Flipping", defined as opening and closing a position with the sole purpose of triggering a trading day, showing significant deviation from the trader's demonstrated trading style (e.g. holding time, frequency, lot sizing). Challenges flagged for flipping are subject to review and potential termination.