Prohibited Trading Practices
12 docs
Hedging Policy – Compliance & Regulatory Guidelines
Last Updated: June 3, 2025⚠️ Please Note: If a trade is unintentionally hedged — even if it hasn’t been flagged yet — it should be closed within 10 seconds. Flags are applied at the end of the day, and closing such trades quickly helps avoid flags. At PropShopTrader, we maintain a strict no-hedging policy in accordance with CFTC (Commodity...
What is the purpose of PropShopTrader’s Prohibited Trading Practices and Gambling Policy?
Last Updated: September 3, 2024The Prohibited Trading Practices and Gambling Policy is designed to promote safe, responsible, and ethical trading within the PropShopTrader community. It outlines expectations for trading behavior, prohibits risky practices, and ensures that all traders adhere to consistent strategies that prioritize long-term growth and risk management.
What constitutes a prohibited trading practice or behavior?
Last Updated: November 21, 2024Prohibited trading practices include: These actions undermine the stability of the trading environment and are considered risky. Click here for more information on Prohibited Practices.
Why is fluctuating trade size considered a gambling practice?
Last Updated: November 21, 2024Fluctuating trade sizes—especially erratic shifts from small to large positions—are viewed as gambling behavior. This indicates a lack of a consistent strategy, which significantly increases risk. Such practices can lead to substantial losses and are therefore strictly prohibited at PropShopTrader. By adhering to proper risk management principles, traders can maintain stability in their accounts and improve their...
What is the Carry-Forward Rule?
Last Updated: March 27, 2025Some traders may attempt to exploit the system by avoiding active trading or flipping accounts. These actions conflict with the firm’s goal of fostering disciplined traders who consistently demonstrate proper trading behavior. For this reason, we have introduced a Carry Forward Rule. Carry-Forward Rule: Profit Balance Carry Forward Requirement This rule applies to all Gladiator Accounts (PTSA) that have...
How important is risk management at PropShopTrader?
Last Updated: November 21, 2024Risk management is a cornerstone of trading success at PropShopTrader. Traders are required to: Consistent risk management practices are vital for ensuring long-term success and account stability. Click here for more information on Prohibited Practices.
Is continuous education important for traders?
Last Updated: November 21, 2024Absolutely. Continuous learning is essential for traders to stay ahead in the ever-evolving financial markets. Staying informed about market trends, developing new trading strategies, mastering risk management techniques, and understanding other relevant topics are crucial for making well-informed trading decisions. At PropShopTrader, we strongly encourage traders to prioritize education and remain aware of the latest...
What happens if a trader violates the Prohibited Trading Practices?
Last Updated: September 3, 2024If a trader violates any of the prohibited trading practices, PropShopTrader may take several actions, including restricting trading privileges, revoking profits generated through violations, terminating accounts, or reducing leverage. The company reserves the right to enforce these measures to protect the integrity of the trading platform.
Can a trader be disqualified from the program?
Last Updated: September 3, 2024Yes, if a trader engages in activities that violate the company’s policies or pose a risk to the platform, they may be disqualified from further participation in any phase of the program, including the Warrior, Gladiator, or REAL PROP phases. Disqualification may also result from attempts to manipulate accounts or engage in fraudulent activities.
Are automated trading strategies allowed?
Last Updated: September 3, 2024Automated and semi-automated strategies are permitted, but traders must be present and actively monitoring the trades. They should intervene manually when necessary and ensure they fully understand and manage the system rules, entries, stops, and profit-taking strategies.
Are the Prohibited Trading Practices and Gambling Policy subject to change?
Last Updated: November 21, 2024Yes, PropShopTrader reserves the right to modify, update, or revise these policies at any time without prior notice. Traders are required to adhere to the prevailing rules and acknowledge that these policies are non-negotiable. Click here for more information on Prohibited Practices.
What is the Non-Disparagement Clause?
Last Updated: November 21, 2024The Non-Disparagement Clause prohibits clients, influencers, affiliates, and associated parties from posting or sharing content that harms the company’s reputation. Violating this clause can result in legal action and termination of agreements with the company. Click here for more information on the Non-Disparagement Clause and Prohibited Practices.