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Prohibited Forex Trading & Customer Actions Harmful to Funded Peaks
Prohibited Forex Trading & Customer Actions Harmful to Funded Peaks

Information about Prohibited Forex Trading & Customer Actions

Updated over a week ago

One-sided betting

One sided betting is opening a trade in the same direction whether after a previous trade is closed or whilst a previous trade in the same direction is open. One sided betting includes but is not limited to martingale strategies that DO NOT have a clear and concise loss strategy but rely purely on continuously adding to a trade in the hopes things turn around. Some martingale strategies do have clear rules around their stop losses and are accepted but these generally do not involve large margin usage at any given time.

Taking a single trade in a direction and opening a new one in the same direction after the previous one has closed is also betting recklessly and does not pertain to effective trading. This practice cannot be effectively executed without significant risks involved to Funded Peaks whether hedged or not.


Over Leverage, Over-load & Over Demand

If a user at any time receives a margin call it is a clear indicator that the account is being over leveraged. If there is a sudden move in the market by which a margin call or stop order has to be executed the slippage can be significant and pose a serious risk to any potentially hedged trade and the company. An example of this happening is when the EUR/CHF floor was removed. Multiple financial institutions suffered significant losses from an unpredictable moment of volatility. Keeping position size and margin usage at responsible levels is necessary at all times. If we feel you are over leveraging your account we will issue warnings to cut risk. After the warning if the behaviour continues your account will be terminated.

Over Exposure

Like over leveraging, over exposure occurs when you have a number of medium size positions across multiple pairs or instruments achieving a similar outcome of having high exposure to the market conditions. With Over leverage or over demand you will be more focused on one or two instruments but with over exposure the same high risk behaviour occurs across many pairs or instruments. To avoid over exposure simply make sure that your net position is at realistic levels.


Account Rolling

The prop firm opportunity has resulted in large numbers of groups, course sellers, signal sellers, and other personalities to sell access to “strategies” that fall under account rolling. There are two types of account-rolling strategies, passed account rolling and new account rolling.

Passed account rolling is purchasing many accounts of the same or similar sizes, passing them all above the max allocation and then trading each one individually at the funded stage. Replacing failed accounts with the other accounts that have passed. This type of account rolling will result in immediate termination of our services.

New account rolling is purchasing a single account, trading it at full risk and if you fail you purchase an additional one and take the same position until you pass. During the funded phase you then continue to maintain high leverage or high risk tolerance in the hopes of recovering the money from the failures. This is a type of gambling trading behaviour that will not be tolerated and ignores the opportunity of being a virtual funded trader.

Prohibited Forex Trading & Customer Actions Harmful to Funded Peaks

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