2- Step Challenge: Is there a Gambling Rule?

2 min. readlast update: 05.20.2025

Prohibited Gambling Trading Practices (Funded Account Stage):

  • Overexposure
  • Position concentration
  • Hyperactive Trading
  • Chasing Losses 

Definition of Gambling Behaviour:
Traders must maintain a disciplined, well-calculated approach and avoid excessively risky behaviours. 

Position concentration

  • Avoid placing trades predominantly in one direction without proper market analysis. Repeated high-volume trades on the same asset and direction within a short timeframe may be considered speculative and flagged as prohibited activity. Excessive Activity, Frequent, impulsive trading in a short time frame is discouraged. Focus on thoughtful, strategic trades that align with your risk management and long-term objectives.

Hyperactive Trading

  • Refrain from making too many trades in a short period or making impulsive decisions. Focus on well-considered trades that align with your long-term plans and risk tolerance.

Chasing Losses

  • Chasing losses refers to the practice of immediately entering a trade in the opposite direction of a losing position, often within a short time after closing the loss, with the hope of quickly recovering the previous losses. While this approach may appear to offer a fast recovery, it undermines the core principles of strategic decision-making and emotional discipline. More importantly, it disrupts the performance data we rely on to evaluate a trader’s consistency and risk management. This reactive strategy reflects emotional trading rather than calculated judgment, which can lead to further losses and compromises the integrity of the evaluation process. Instead, we expect traders to demonstrate composure, patience, and a well-reasoned approach—key traits that signal long-term trading discipline and capability.

 

Note:

Suspected gambling behavior will be evaluated on a case-by-case basis. If a trader is found to be engaging in such behavior, it may result in a hard breach or the forfeiture of their account.

 

Was this article helpful?