Prohibited Trading Practices
Trading Practices That Will Breach Our Terms and Conditions:
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Exploitation of Price Discrepancies or Glitches (Arbitrage Trading):
Situation: A trader notices that the same asset is priced differently on two exchanges and exploits this by buying/selling the asset where the price is different, profiting from the discrepancy.
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High-Frequency Trading:
Situation: A trader uses sophisticated algorithms to execute thousands of trades within milliseconds, capitalizing on small price movements for profit.
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Exploiting System Errors:
Situation: A trader takes advantage of inaccuracies in price display or delays in updating due to technical glitches, placing trades to profit before the errors are corrected.
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Trade Coordination or Copy Trading:
Situation: A group of traders collaborates to execute coordinated trades across multiple accounts, sharing signals and strategies to amplify collective profits.
Note: Copy trading is only allowed in Pro funded accounts copying Pro funded top traders. -
One-Sided Bets:
Situation: A trader consistently takes positions in one direction without considering market conditions or conducting proper analysis, assuming indefinite price movement.
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Expert Advisors (EAs) Scalping During Rollover-Night:
Situation: A trader uses an EA programmed to exploit price discrepancies during the low-liquidity rollover period, executing rapid trades for small profits.
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Using Third-Party EAs with Market Saturation:
Situation: A trader purchases an EA used by many others, leading to market saturation and reduced effectiveness.
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Using EAs Without Owning the Source Code:
Situation: A trader subscribes to an EA service without access to the source code, deploying it without understanding or customizing its operation.
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Tick Scalping:
Situation: A trader engages in rapid trading, entering and exiting positions within seconds based on minor price fluctuations occurring with each market tick.
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Hedge Arbitrage Trading:
Situation: A trader simultaneously buys and sells the same currency pair on different accounts to exploit temporary pricing inefficiencies.
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Reverse Arbitrage Trading:
Situation: [Not Specified]
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Account Sharing or Reselling Accounts:
Situation: A trader sells access to their funded trading account to another individual or entity, allowing them to trade on their behalf or for their own purposes.
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Account Management Services ("Pass Your Challenge"):
Situation: A service manages challenge accounts for others, promising to pass the evaluation phase in exchange for a percentage of the profits.
Consequences
- Immediate Termination: If your account is found abusing the system and violating trading rules, the contract will be terminated immediately without agreement.
- No Refunds: Any refund will not be processed.
- Permanent Ban: You will be permanently banned from Clarity Funding LTD Fund.
- News Trading: Profits will not be counted in passing the Test.
- Rules Violation: If any rule is broken, profits will not be counted in passing the Test.