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Prohibited Trading Practices

Alexander Kriss avatar
Written by Alexander Kriss
Updated this week

At FundingRock, we maintain a strict standard of fairness, integrity, and transparency across our Evaluation and Funded Accounts.
Any attempt to gain an unfair advantage, manipulate market conditions, or exploit system vulnerabilities will result in immediate action — including account suspension, profit forfeiture, or permanent termination.

Below is a detailed list of prohibited trading practices, along with common examples for clarity.


1. Arbitrage Trading (Price Discrepancy Exploitation)

Description: Taking advantage of temporary pricing differences across exchanges or brokers for the same or correlated assets.
Example: A trader identifies that the same instrument is quoted at slightly different prices on two platforms. They simultaneously buy on one and sell on the other to capture the difference.


2. High-Frequency or Ultra-Short-Term Trading

Description: Executing large numbers of trades within seconds or milliseconds using automation or algorithms to profit from micro-movements in price.
Example: A trader deploys an algorithm that opens and closes hundreds of trades per minute, seeking small, repeated profits from price ticks rather than genuine market analysis.


3. Bulk or Mass Order Trading

Description: Opening numerous trades simultaneously, often through automated tools, in a way that shows no genuine human decision-making.
Example: An automated system places dozens of trades at once across multiple instruments, clearly indicating that the activity is not trader-driven.


4. Bracketing Around News Events

Description: Placing pending buy and sell orders close to the current price ahead of high-impact economic releases to capitalize on expected volatility.
Example: Before a major news release, a trader sets buy and sell stops on either side of price to capture a breakout in either direction once volatility spikes.


5. Exploiting Technical Errors or System Glitches

Description: Attempting to take advantage of inaccurate pricing, delayed data, or technical malfunctions within the trading platform.
Example: A trader spots a mispriced quote caused by a temporary system lag and places rapid trades to profit from the erroneous price before correction.


6. Coordinated or Copy Trading Between Accounts

Description: Collaborating with other traders or accounts to mirror trades or amplify collective profits.
Example: Several traders share signals and execute matching trades across multiple accounts to artificially boost performance metrics.


7. One-Sided Trading Behaviour

Description: Continuously trading in only one direction (e.g., always buying) without valid analysis or regard for market conditions.
Example: A trader repeatedly opens long positions on the same pair, ignoring technical or fundamental indicators showing a downtrend.


8. Expert Advisors Exploiting Rollover Pricing

Description: Using automated systems that execute high-frequency scalping during low-liquidity rollover periods to capture price feed discrepancies.
Example: An EA runs at rollover, entering and exiting trades within milliseconds to exploit small differences between bid and ask prices.


9. Third-Party Expert Advisors Used by Multiple Traders

Description: Using commercial or shared EAs where identical strategies are widely deployed by other users, often resulting in identical trades across accounts.
Example: A trader purchases a public EA sold online that hundreds of other traders are already using, creating repetitive trading behaviour and execution patterns.


10. Using EAs Without Source Code Access

Description: Employing automated systems provided by external vendors where the trader has no control or visibility over the underlying algorithm.
Example: A trader subscribes to an EA service but has no access to the source code or logic behind the trades, breaching the requirement for full strategy transparency.


11. Tick Scalping

Description: Entering and exiting trades within seconds based solely on micro-tick movements, without legitimate market reasoning or analysis.
Example: A trader repeatedly opens and closes trades after each minor tick fluctuation, creating excessive and unnatural trading activity.


12. Hedge Arbitrage Trading

Description: Opening opposing positions in the same or correlated assets across different accounts to exploit temporary inefficiencies.
Example: A trader buys EUR/USD on one account while simultaneously selling EUR/USD on another to profit from brief price differences.


13. Reverse Arbitrage

Description: Taking positions designed to manipulate price behaviour across multiple platforms by reversing typical arbitrage logic.
Example: A trader intentionally creates opposing pressure between two correlated instruments to benefit from delayed market reactions.


14. Account Sharing or Reselling

Description: Allowing third parties to access, trade on, or purchase the use of your account.
Example: A funded trader gives login access or sells account usage to another individual or company in exchange for a fee or percentage of profits.


15. Account Management or “Pass Your Challenge” Services

Description: Offering or using services that trade on behalf of others during the evaluation process or Funded Phase.
Example: A third-party service provider promises to “pass” the trader’s challenge in return for a cut of future profits — this is strictly prohibited.


16. Other Prohibited Practices (Summary)

  • Artificial trade activity: Opening or closing trades only to meet minimum trading requirements.

  • Over-leveraging: Using extreme leverage inconsistent with account size.

  • Excessive volume: Placing abnormally large trades or trade counts to distort metrics.

  • Trading during restricted times: Opening positions within two minutes before or after major economic events.

  • Use of unapproved automation: Deploying EAs, scripts, or bots that violate FundingRock’s operational ethics.


🚨 Breach Consequences

Violating any of these terms may result in:

  • Immediate suspension or termination of your account

  • Voiding of profits or evaluations

  • Permanent restriction from participating in FundingRock programs


These rules exist to ensure a fair, transparent, and professional trading environment for all FundingRock traders.
If you’re unsure whether your strategy complies with these standards, please contact [email protected] before trading.

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