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What Strategies Are Not Allowed?

What Strategies Are Not Allowed?

Last published :
June 12, 2025
What Strategies Are Not Allowed?
What Strategies Are Not Allowed?

At FORFX, we have specific rules to ensure fair and stable trading conditions. The following strategies are strictly prohibited:

  1. Sharing or Selling Accounts:
    • Sharing or transferring funded accounts to another person is strictly prohibited. This serious violation will result in account closure.
  2. High-Frequency Trading:
    • The use of advanced computer algorithms and high-speed connections to execute a large volume of trades within fractions of a second is prohibited. This increases the likelihood of market manipulation and creates unfair and unstable market conditions.
  3. User Collusion:
    • User collusion involves different individuals opening multiple separate accounts and executing trades in the same direction on the same asset across all accounts, manipulating the market. This is strictly prohibited.
  4. Hedging or Group Hedging Across Multiple Accounts:
    • Opening multiple accounts and executing trades in different directions on the same asset, commonly known as ‘hedging,’ is forbidden. This strategy causes losses for some and conflicts with real market rules.
  5. Using Delayed Data:
    • Using delayed data, such as stock prices or trading volume, to gain an unfair advantage over traders relying on real-time data is strictly prohibited.
  6. Trading Based on Delayed Charts:
    • Trading based on charts or graphical symbols provided with a delay is not allowed.
  7. Gambling Trade:
    • Challenge Phases
      Traders must not earn more than 80% of their profit target in a single trade or in multiple simultaneously open trades on one or multiple symbols.

      • For example, on a $10,000 demo challenge account with a $1,000 profit target, you may not make more than $800 (80% of $1,000) in profit through one trade or several trades opened at the same time on any symbol(s).

      • If we detect such activity, it will be treated as a risk‐management violation and the profits from those trades will be removed.

      • The purpose of this rule is to prevent traders from completing the challenge through hedging or accepting excessively large risks.

      • Each violation counts as a “Soft Breach.” Upon the third Soft Breach, your account will be suspended and you will no longer be able to trade.

      Funded Accounts
      When trading on a funded account, any requested withdrawal must not include profits where more than 80% was earned in one or more simultaneous trades. If you have done so, you must continue trading until the portion of your total profit earned in simultaneous trades falls below 80%.

      • Example: On a $10,000 funded account you have earned $1,000 in total profit, of which $830 came from one or more simultaneous trades. Those $830 are considered invalid for withdrawal and remain locked in the account. You must keep trading until the amount from simultaneous trades is less than 80% of your total profit.

        • On a “Peak Scalp” challenge, that means you must reduce the simultaneous-trade portion to under $800; on a “Legend” challenge, under $900, before you may submit another withdrawal request.

      If this rule is violated during a challenge phase, the trade(s) that generated over 80% of the target profit will be removed, and the trader may continue trading. On a funded account, the trader must keep trading until the ratio rebalances below 80%. (If the account is “breached,” no withdrawal of gambling-style profits is possible.)

      Additional Clarifications

      • Only in challenge phases, This rule does not offset any losses—only the 80% profit-target threshold matters.

      • If multiple trades are open simultaneously, only those closed with a profit are counted toward the 80%. Loss-making simultaneous trades do not offset the calculation.

      • “Simultaneous trades” are defined by overlapping open times, not by opening timestamp alone. For instance, if Trade A is opened, and one hour later Trade B is opened while Trade A remains open, they are considered simultaneous. If you close Trade A before opening Trade C, then Trades A and C are not simultaneous.

      • If a trade remains open for an extended period (e.g. 20 days), any trades opened and closed during those 20 days are all considered simultaneous with it.

  8. Abuse of Price Latency
    • Definition: Price latency abuse involves exploiting discrepancies or delays in price feeds to make riskless profits using technical means or third-party services.
    • Monitoring and Consequences:
      • Challenge Phase: Accounts engaging in price latency abuse will be disqualified and not upgraded.
      • Funded Stage: Accounts will be terminated immediately, and any pending payouts forfeited.
      • Account Termination and Ban: Guilty traders will have their accounts permanently terminated and be banned from opening new accounts.
    • Finality and Amendments:
      • Decisions on account termination and banning are final and non-negotiable.
      • FORFX may amend these terms anytime, with notification via the platform.
  9. Abuse of Dividend Events
    • Definition:Dividend event abuse involves placing high-margin trades just before a dividend event to make riskless profits.
    • Monitoring and Consequences:
      • Challenge Phase: Accounts will be disqualified and not upgraded.
      • Funded Stage: Accounts will be terminated immediately, and any pending payouts forfeited.
      • Account Termination and Ban: Guilty traders will have their accounts permanently terminated and be banned from opening new accounts.
    • Finality and Amendments:
      • Decisions on account termination and banning are final and non-negotiable.
      • FORFX may amend these terms anytime, with notification via the platform.
  10. Arbitrage Trading in Forex
    • Definition:Arbitrage trading involves exploiting price discrepancies between markets or brokers to make a profit
    • Policy and Consequences:
      • Prohibition: Arbitrage trading is strictly prohibited.
      • Challenge Phase: Accounts engaging in arbitrage trading will be disqualified.
      • Funded Phase: Accounts will be terminated immediately, and no profit will be paid out.
      • Permanent Ban: Guilty traders will be permanently banned from the platform and from purchasing any challenges in the future.

These policies ensure a fair and equitable trading environment for all participants at FORFX. By engaging in trading activities with FORFX, traders acknowledge and agree to abide by these terms and conditions. Any violation will result in the outlined consequences.