Exploitive Trading Behaviors
These involve taking advantage of the simulation’s environment in ways that are unrealistic or impossible in live markets.
Exploiting Platform Errors or Latency
Using Non-Public or Insider Information
Micro Scalping in a Simulated Environment
Abusing Simulated Market Liquidity
Device Sharing & Copy Trading other Traders
Exploiting Platform Errors or Latency:
Traders are not allowed to exploit software bugs, pricing errors, or latency issues in the simulated platform to gain an unfair advantage.
Example: If a glitch in the pricing system allows you to buy shares at outdated or incorrect prices, using this to profit is considered a violation.
Using Non-Public or Insider Information:
Trading based on material, non-public information (MNPI) is strictly prohibited. This aligns with regulations in live markets and ensures fair competition.
High-Frequency Trading (HFT) Exploiting the Bid-Ask Spread:
HFT strategies that exploit inefficiencies in the simulated platform’s bid-ask spread are not allowed.
Example: Repeatedly profiting from discrepancies in spread due to simulation constraints would be flagged as exploitive behavior.
Micro Scalping in a Simulated Environment:
Micro scalping strategies that exploit unrealistic execution mechanics in a simulated platform are prohibited. These strategies take advantage of conditions that would not exist in a real trading environment, such as instant order fills, unlimited liquidity, and artificially tight spreads.
Key exploitive behaviors include:
Excessive contract sizing beyond real-market liquidity constraints: In a simulated environment, traders may be able to execute large order sizes without affecting the price, whereas in live markets, liquidity constraints would prevent such trades or cause significant slippage.
Unrealistic profits from micro price movements and bid-ask spreads: Some traders attempt to profit from tiny fluctuations in price, which may not be executable in real markets due to lack of liquidity or competition from other market participants.
Instant fills without market impact: In live trading, placing a large order within the bid-ask spread can move the market or cause partial fills at varying prices. A simulated environment that allows full execution at a fixed spread without slippage creates an unrealistic advantage.
Example: A trader scalps the bid-ask spread by buying and selling thousands of contracts per second, securing instant fills and capturing micro profits that would not be possible in a real market due to liquidity limitations, competition, and order book depth.
Commitment to Ethical and Fair Trading
Vanquish values your cooperation with these guidelines, which help create a successful trading future. Our policies protect both traders and the firm, fostering a supportive environment for developing genuine trading skills. We urge all traders to trade ethically and respect the guidelines and platform to ensure a sustainable and profitable trading environment for everyone.