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Account Violations
Account Violations
Updated over a month ago

The following violations apply specifically to the Instant Funding Programs. As part of our risk management protocol, any of these violations can result in a breach of your account. Below is a detailed explanation of each violation with examples for clarity.

  1. Closing a Trade Within 2 Minutes of Opening

    Trades must remain open for a minimum of 2 minutes. Closing a trade before this duration is considered high-frequency trading, which is strictly prohibited. Even if your Stop-Loss (SL) or Take-Profit (TP) is hit within 2 minutes, it will still count as a violation of this rule.

    Example:

    You open a trade at 10:00 AM.

    The trade hits your TP or SL, or you manually close it at 10:01 AM.

    Since the trade duration is less than 2 minutes, this action is a violation of the policy.

    This rule ensures trades align with standard risk management practices and avoids rapid, speculative trading behavior.

  2. Failing to Set a Stop-Loss (SL) Within 15 Seconds

    A stop-loss must be set within 15 seconds of placing a trade to manage risk and prevent uncontrolled losses.

    Example: You place a trade at 12:00 PM but fail to set a stop-loss by 12:00:15 PM. This is a violation, as proper risk management protocols were not followed.

  3. Engaging in Copy Trading or Using VPN/VPS Services

    Copy trading, where trades are replicated from another account, is strictly prohibited—even if the account belongs to you or is another Arctic account. This ensures that all trading activities reflect individual skill and decision-making. Additionally, the use of VPN or VPS services to trade is not allowed, as it compromises the integrity and security of the trading environment.

    Example:

    • If you link two accounts and replicate trades from one to another, regardless of whether both accounts belong to you, this violates the policy.

    • Similarly, if you use a VPS to automate trades or conceal your trading location, it is considered a breach of the Instant Funding Program terms.

    This rule safeguards fairness and accountability, ensuring that all traders operate within the program's guidelines.

  4. Opening or Closing a Trade During the 20-Minute News Window

    Opening or closing trades within a 10-minute window before or after a major news event is prohibited to avoid exposure to unpredictable market volatility.

    Example: A major news event is scheduled at 2:00 PM. You must not open or close trades between 1:50 PM and 2:10 PM. If you do, it will result in a breach.

  5. Carrying Trades Over the Weekend

    All trades must be closed before the market closes on Friday to avoid the risk of holding positions over the weekend.

    Example If you leave a trade open after the market closes on Friday, it violates this policy, regardless of the trade's status or potential profit.

  6. Losing More Than 1% on a Single Position

    A single trade must not incur a loss exceeding 1% of the account balance. This rule ensures effective risk management and account longevity.

    Example: If your account balance is $100,000, the maximum allowable loss on a single trade is $1,000. A loss of $1,100 would breach this rule and result in a violation.

  7. Reverse Trading

    Reverse trading occurs when a trader opens a trade in the opposite direction shortly after closing a losing position, often in an attempt to recover losses quickly. This approach is discouraged as it can disrupt risk evaluation and bypass key skills such as discipline and strategic decision-making.

    Example:

    If you close a losing sell trade on EUR/USD and immediately open a buy trade on the same pair, this is considered reverse trading. To comply with the policy, you must wait at least 5 minutes before opening a trade in the opposite direction.




    Please note that violations of the account rules outlined above may not result in immediate action. In the event of a breach, it may take 24 to 48 hours for you to receive an official breach notification via email. During this time, your account will also be disabled in accordance with the stated policies.

    This process ensures a thorough review and accurate enforcement of the rules while maintaining transparency and fairness for all traders.

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