At FutureFunded, we are committed to fostering a fair and professional trading environment for all traders. To maintain integrity and ensure sustainable growth, certain trading practices are prohibited. Below, we answer common questions about these practices and explain the consequences of engaging in them.
What is High-Frequency Trading (HFT) and Tick Scalping, and why is it prohibited?
High-Frequency Trading (HFT) and tick scalping involve excessive and rapid trading activity, particularly during periods of high volatility. While these strategies may seem profitable, they can lead to significant losses and disrupt market stability. As a result, such practices are not allowed on our platform.
What types of arbitrage are considered prohibited trading?
All forms of arbitrage are classified as prohibited trading due to their lack of a clear and legitimate trading strategy. Common examples include:
Hedge Arbitrage: Simultaneously opening opposing positions with different firms to exploit pricing inefficiencies.
Latency Arbitrage: Profiting from discrepancies in trade execution speeds or data feed delays across various platforms or venues.
What forms of copy trading are permitted or restricted?
Copy trading is allowed for trades between FutureFunded accounts, evaluation firms, or retail brokerage accounts, provided all such accounts are owned by the same individual. This allows you to copy trades across any accounts that you personally own.
However, copying trades between accounts owned by others, including relatives, family members, or friends, is strictly prohibited. This restriction also applies to Signal Trading, which involves trading based on signals received from community groups or similar sources.
FutureFunded employs a sophisticated detection system to identify accounts with high trade pattern similarities, such as matching opening and closing prices, trade sizes, trade size ratios, and trade symbols. Any accounts flagged by this system are subjected to manual review for further investigation.
These methods undermine the integrity of the trading environment and are strictly disallowed. Traders found engaging in prohibited trading may have their accounts breached and face a potential ban from our platform.