High-Frequency Trading (HFT):
High-Frequency Trading (HFT) is a trading strategy characterized by the use of sophisticated expert advisors and high-speed telecommunication networks to execute an excessive number of trades within milliseconds or seconds. This strategy aims to profit from tiny price fluctuations and exploit market inefficiencies. While HFT may seem appealing due to its potential for quick gains, it carries significant risks and can have harmful effects on the market.
This is why HFT is restricted on the FXLIVE CAPITAL platform:
High-frequency trading can distort market prices and create artificial supply or demand. By executing a high volume of trades in a matter of seconds, HFT traders can create false impressions of market activity, influencing other participants’ decisions and resulting in market manipulation. The excessive transaction volumes caused by high-frequency trading can destabilize the market. Rapid order entries and exits may create volatility, leading to erratic price swings and increased market uncertainty, making it difficult for other traders to make informed decisions. Due to the massive number of trades in a short period of time, servers often freeze and suffer consequences.
Note: If a trader receives a warning for hyperactivity and subsequently engages in high-frequency trading (or vice versa), this may result in a more severe penalty, including account suspension. Warnings are cumulative, and the system may immediately suspend accounts in cases of extreme or repeated hyperactivity or high frequency that places heavy strain on our servers.
Quick Strike Method:
The Quick Strike method is an ultra-fast trading strategy where traders take advantage of the financial market by exploiting brief market moves through a large volume of trades, typically holding positions for a very short time. Traders using this method seek to capitalize on fleeting price fluctuations to secure small, immediate profits. While the Quick Strike method offers the possibility of rapid financial gains, it also carries inherent risks.
Though the appeal of quick profits is tempting, the Quick Strike method can exacerbate market volatility and contribute to artificial price movements. This increased volatility may mislead other market participants and create a distorted perception of market conditions. As a result, the Quick Strike method presents challenges to maintaining platform integrity and fairness.
This is why the Quick Strike method is restricted on the FXLIVE CAPITAL platform:
The Quick Strike method is restricted on our platform due to its potential to disrupt market balance and fairness. Characterized by rapid transactions and ultra-short holding periods, it raises legal concerns due to its potential to manipulate markets, create unfair advantages, and undermine regulatory goals. This strategy involves executing numerous trades in seconds, which can inflate transaction volumes and deceive other traders, resulting in volatile price swings and market instability. In essence, while it may offer profit opportunities, its legality is questionable due to its potential negative effects on market integrity and fairness.
Copying Trades from Others:
FXLIVE CAPITAL allows traders to copy trades from another FXLIVE CAPITAL account, a proprietary firm, or a retail broker, provided that all accounts are owned by the same individual. This means you may copy trades from any account you own.
However, Copy Trading across multiple accounts that are not owned by the same individual—including those of relatives, family, or friends—is strictly prohibited.
Hedging or Group Hedging Across Multiple Accounts:
Traders are strictly prohibited from using hedging strategies, defined as opening opposing positions (e.g., buy and sell) on the same trading instrument at any time, thereby partially or fully offsetting exposure.
This applies to:
- The same trading account
- Multiple accounts under the same client ID or IP
- Use of external platforms coordinated with internal accounts
Hedging strategies are considered a form of platform manipulation when used to:
- Neutralize market direction exposure
- Circumvent drawdown or risk limits
- Delay the realization of floating losses
- Exploit bonus, evaluation, or profit-sharing mechanisms
What is not allowed?
Hedging across multiple accounts is strictly prohibited. This refers to placing opposing trades in different accounts for the same asset. Doing so is not considered a genuine trading strategy and may result in account termination.
Group Hedging Across Multiple Accounts:
Group hedging across multiple accounts involves opening several accounts and executing opposing trades on the same asset across those accounts. The goal of this approach is to reduce market risk by exploiting price movements. However, this strategy is not considered a legitimate trading practice and is prohibited because it does not reflect proper trading methodology.
Any Form of Arbitrage Trading:
Arbitrage trading refers to the practice of exploiting price discrepancies or time lags across different markets or platforms to generate risk-free profits. At FXLIVE CAPITAL, any form of arbitrage trading is strictly prohibited due to its unethical nature and potential to disrupt fair market conditions.
Example: Arbitrage trading can distort market prices and hinder the efficient allocation of resources. By exploiting price differences, arbitrage traders can cause prices to deviate from their true fundamental values, creating inconsistencies in market pricing. A trader performs statistical arbitrage by simultaneously buying and selling related instruments based on historical price patterns. Their trading activity distorts the market prices of those instruments, creating mismatches between perceived and actual value. Additionally, large-scale arbitrage activity can trigger rapid price movements, generating artificial market fluctuations and destabilizing the normal price discovery process.
Martingale Strategy:
The use of Martingale strategies, where trade size increases exponentially after a loss (e.g., doubling the lot size with each losing position), is strictly prohibited on all accounts, including funded, evaluation, demo, and real trading accounts.
Martingale strategies are inherently high-risk and often result in:
- Exponential growth of open positions
- Rapid escalation of losses during ranging or trending markets
- Margin exhaustion and account liquidation after just a few consecutive losses
This approach not only endangers the trader’s account but also undermines the platform’s risk control policies and funding model.
Why it’s banned in our rules: While the strategy may seem appealing, Martingale is extremely risky. In financial markets, there is no guarantee of a winning trade before accumulated losses become unsustainable. Using this strategy can lead to:
- Overexposure: Position sizes increase exponentially, quickly depleting the trader's capital
- Massive losses: Just a few losing trades in a row can result in total loss of funds
To protect our clients and ensure responsible trading practices, the use of Martingale is strictly prohibited.
Grid Trading:
Clients are strictly prohibited from using automated or manual trading strategies that involve placing multiple simultaneous or sequential positions in fixed or variable pip interval patterns (commonly known as Grid Trading) to exploit price movement without regard to market direction or conditions.
Position Layer Threshold:
A maximum of [6] grid levels per trading cycle is allowed. Any new order placed beyond the designated disqualification level (defined by a cumulative price deviation from the initial entry exceeding 0.3%) will be considered a violation.
Disqualification Trigger:
If an order is executed above or below a price level where the cumulative price deviation exceeds the allowed grid range, the account may be flagged for grid abuse and trades may be subject to cancellation, profit disqualification, or account suspension.
One-Sided Betting:
One-Sided Betting refers to a trading strategy in which a trader consistently takes positions in a single direction without regard for market conditions or proper analysis. At FXLIVE CAPITAL, one-sided betting is restricted due to its speculative nature and the potential for significant losses. One-Sided Betting involves the continuous sale or purchase of any instrument without regard for fundamental news, economic indicators, or technical signals that suggest a possible increase or decrease in price. This lack of analysis increases the likelihood of entering trades with unfavorable risk-reward ratios.
Example: A trader places one-sided bets by continuously buying a particular instrument without regard for any potential negative factors or signs of an upcoming market decline. This lack of diversification leaves them vulnerable to substantial losses if the instrument's price declines unexpectedly.
Account and Device Sharing: Account sharing refers to the unauthorized practice of sharing or reselling FXLIVE CAPITAL accounts with other individuals or entities. Sharing devices with other operators, regardless of the relationship, is strictly prohibited. This behavior violates FXLIVE CAPITAL's Terms of Service and is strictly prohibited. We maintain a zero-tolerance stance toward account or device sharing for a variety of reasons.
Other Prohibited Activities
- Exploiting errors in the Services:The Client must not, intentionally or otherwise, use trading strategies that exploit errors in the Services, such as inaccuracies in the displayed prices or delays in their updates, including practices known as Latency Trading.
- Use of external or slow data feeds:It is prohibited to execute trades using an external or slow data feed or to engage in “gap trading.”
- Trading through connected accounts for manipulation:The Client is prohibited, whether alone or in collaboration with others, from engaging in trades or combinations of trades through connected accounts or accounts maintained on the platform with the purpose of manipulating trading (commonly known as Group Trading). Examples of such manipulation include opening opposing positions simultaneously.
- Use of software or technology to manipulate:The use of any software, artificial intelligence, ultra-high-speed trading, high-frequency trading, or mass data entry that may manipulate or abuse the Provider's systems or services, or that provides an unfair advantage to the Client, is prohibited.
- Arbitrage:The performance of arbitrage (of any kind) is prohibited, including, but not limited to, arbitrage such as:• Triangular arbitrage• Statistical arbitrage• Latency arbitrage• Market-making arbitrage• Spatial arbitrage• Pairs arbitrage• Risk arbitrage• Convertible arbitrage• Volatility arbitrage• Dividend arbitrage• Tax arbitrage• Yield curve arbitrage• Or any other form of arbitrage that may exploit price differences between different markets or exchanges.
- Trades inconsistent with the market:It is prohibited to execute trades that are inconsistent with the typical operations of forex or any other financial market.The Client must avoid any activity that may cause financial harm or any other type of damage to the Provider, such as over-leveraging, overexposure, using a Martingale strategy, HFT, one-sided bets, grid trading, tick scalping, or account rolling.Participating in any of these activities could raise valid concerns regarding the intentional harm to the Provider.
- Unauthorized copy trading:Copy trading is prohibited, in which trades mimic or replicate the trading activities of other traders or entities without the Provider's prior authorization.
- Trades executed by third parties:The Client, or any third party, is prohibited from participating or collaborating in having a third party execute trades on behalf of the Client, whether that third party is a private individual or a professional, or from allowing access to or trading on the FXLIVECAPITAL Challenge Account by any third party.
- Opening inappropriately sized positions:It is prohibited to open positions with sizes notably larger than the Client’s other trades, whether in this account or another.It is also prohibited to open positions with quantities that are significantly smaller or larger than those of the Client’s other trades, whether in this account or another.
- Use of high margin or extremely risky strategies:The use of a high margin level or extremely risky trading strategies by the Client is prohibited.
- Trading during news events:At FXLIVECAPITAL, trading is allowed during news events, but with an important restriction: no trades may be opened 5 minutes before or 5 minutes after the release of a press statement.
- Trades must remain open for a minimum of 3 minutes to be considered valid.
PROHIBITED ACTIVITIES – EXCEPTIONS FOR POWER LIVE (DIRECT FUNDED)
- POWER LIVE account as a Normal Real Account:Your POWER LIVE account will now operate as a Normal Real Account, with minimal restrictions to provide you with the best trading experience.
- Allowed exceptions for POWER LIVE Accounts:• Grid Trading: Grid trading is allowed with a maximum of six (6) open positions simultaneously. Exceeding this limit will result in the affected trades being rejected.• Martingale Strategy: Trading using the Martingale strategy is allowed with a maximum of three (3) open positions simultaneously (with 2 hedging positions). Exceeding this limit will result in the affected trades being rejected.• Copy Trading: Copy trading is allowed between the user’s own trading accounts. Any account connected among multiple users will result in the termination of both identified accounts.
- Restart opportunity for violations:In cases of violation of these rules, the POWER LIVE ACCOUNT may be granted a one-time restart opportunity. Eligibility for this option will depend on the severity of the infraction. FXLIVECAPITAL reserves the exclusive right to approve or deny the restart opportunity.
- Refundable Initial Deposit (No Risk!):Achieve consistent success and generate withdrawals above 3% monthly consistently for 3 months (within a 6-month period), and your initial deposit will be fully refunded, allowing you to trade without risking your own funds.
Challenges Related to Synthetic Pairs:
- To ensure the sustainability and fairness of our program, a maximum profit cap of 10% will be applied to trades with synthetic pairs. This adjustment improves the sustainability of the products while maintaining a higher withdrawal success rate for our profitable traders.
Synthetics Challenges ( Apply to the challenges with 3% Max Daily Drawdown)
Grid Trading: Grid trading is allowed with a maximum of six (6) open positions simultaneously. Exceeding this limit will result in the affected trades being dismissed.
Martingale strategy: Martingale strategy trading is allowed with a maximum of three (3) open positions simultaneously ( 2 coverage positions). Exceeding this limit will result in the affected trades being dismissed.