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Risk Control for Latency Trading, Arbitrage and HFT
Risk Control for Latency Trading, Arbitrage and HFT
Updated over 2 months ago

Latency Trading, Arbitrage and HFT are practices in which a trader uses a series of sequential operations exploiting price differences between a fast broker and a slow broker, or exploiting anomalies in the broker's data fee.

The parameters of Latency Trading, Arbitrage and HFT:

  • Data Feed Differences: Operations made during Data Feed Differences

This behavior is absolutely prohibited in Prop Number One.

Any type of such strategies is prohibited, including:

  • HFT

  • Latency Trading

  • 1 Leg Arbitrage

  • 2 Leg Arbitrage (Same Account)

  • 3 Leg Arbitrage (Same Account)

  • Triangular Arbitrage (Same Account)

  • 2 Leg Arbitrage (Different Accounts)

  • 3 Leg Arbitrage (Different Accounts)

  • Triangular Arbitrage (Different Accounts)

The use of any type of software capable of performing operations of this kind is prohibited, including:

  • DAAS

  • NewHope

  • WesternPips

  • SharpTrader

The rules and penalties applicable based on the number of warnings received are explained below.

What happens if I am reported for Latency Trading, Arbitrage and HFT?

What happens with a first warning

  • Stage 1: You are warned and your account is permanently closed.

  • Stage 2: You are warned and your account is permanently closed.

  • Funded: You are warned and your account is closed permanently.

N.B.

Of course we will provide all the necessary evidence of our systems so that our users can also verify.

Please note that any Prop passing service is prohibited.

Please note that it is the trader's responsibility to ensure that the software and BOT purchased do not mediate prices, in any case once the sanction is detected the risk management will apply it unilaterally.

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