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Prohibited Trading Practices
Prohibited Trading Practices
Updated over a week ago
  • Group Trading: Copy trading or reverse trading with others is not allowed.

  • High-Frequency Trading: Automated trading of large volumes at very high speeds is prohibited.

  • News Scalping: Rapidly trading during high-impact news releases to exploit the market feed is prohibited.

  • Arbitrage: Any form of arbitrage trading is strictly forbidden.

  • Multi-Account Reverse Trading: Holding opposing positions in different accounts, whether within Arctic Funding or with other firms, is not allowed.

  • Tick Scalping: Opening and closing large positions within seconds in a manner that cannot be mirrored live is prohibited.

  • Copying Trades

  1. Group hedging and coordinating opposing positions across one or multiple prop firms to manipulate risk is strictly prohibited.

  2. Purchasing or providing account management services, or engaging in prop firm passing services, is forbidden.

  3. Sharing account information or allowing someone else to pass an account on your behalf will result in the loss of all involved accounts.

  4. Mirroring trades from another trader or group of traders across multiple accounts is not allowed

  • Gambling

Gambling your way through a challenge phase is strictly prohibited. At Arctic Funding, gambling is defined as:

  1. Excessive Scalping: Executing 50% or more of your trades with a hold time of less than one minute.

  2. Martingale Strategy: Opening five or more positions simultaneously in drawdown on the same pair.

  3. All-In Trading: Entering a trade without risk management (no stop-loss) and holding it until you either pass or fail the challenge in a single move.

Examples:

  • Excessive Scalping:

    • A trader places a total of 40 trades, with 21 of them held for less than 60 seconds. Since more than 50% of the trades were held for under a minute, this is considered excessive scalping.

  • Martingale Strategy:

    • A trader opens several positions in the USD/JPY pair: Long USD/JPY at 110.50, Long USD/JPY at 110.30, Long USD/JPY at 110.10, Long USD/JPY at 109.90. Without proper monitoring, they open another position at 110.70, resulting in five positions in drawdown, thus violating the rule.

  • All-In Trading:

    • A trader opens a two-lot position on GBP/USD without setting a stop-loss. The trade either passes the challenge in one go or fails, which does not demonstrate trading skill and will result in not advancing to the funded stage.

Note: A ‘trade’ can be defined as a position held by the trader on a specific pair, potentially including multiple entries with similar timings and lot sizes. Trades with significantly smaller lot sizes will not count. If found to be gambling, you will not advance to the funded stage and may be offered a chance to retry the challenge.

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