Prohibited Trading Practices
To ensure fairness and integrity in the simulated trading environment, the following trading behaviors are strictly prohibited. Violations may result in account review, suspension, or closure.
Exploitive Trading Behaviors
These involve taking advantage of the simulation’s environment in ways that are unrealistic or impossible in live markets. Examples include:
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simulated platform to gain an unfair advantage.Example: If a glitch in the pricing system allows you to buy shares at outdated or incorrect prices, using this to profit is considered a violation.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. For instance, repeatedly profiting from discrepancies in spread due to simulation constraints would be flagged as exploitive behavior.
Account Sharing
Can someone else trade on my account?
No, sharing your account login details with others is a serious violation. Account sharing can lead to immediate account closure. Trading accounts must be used exclusively by the account holder to maintain security and compliance.
Finding and Using Exploits in Simulated Markets
Traders are strictly prohibited from leveraging strategies that exploit the simulated trading environment in ways that would be unfeasible or impossible under real market conditions.
Trading Assets with Limited Liquidity
Example – Options: Trading highly out-of-the-money (OTM) options with little to no open interest or volume and receiving fills at favorable prices that wouldn’t realistically occur.
Example – Stocks: Shorting more shares than are available to borrow or taking oversized positions that exceed actual market liquidity.
If such activity is detected, the account will be flagged for review and may be subject to permanent suspension under the Vanquish Exploit Policy (see Section 5).
Examples of Exploitive Behaviors in Simulated Markets
Simulated markets, while designed to closely mimic live conditions, do not replicate all aspects of real-time liquidity, slippage, and execution. Repeatedly taking advantage of these gaps constitutes an exploit and is grounds for removal from the platform.
(i) Overleveraging Beyond Market Liquidity
Simulated: Taking oversized positions in illiquid instruments without impact.
Live: These trades would cause significant price slippage or be outright impossible.
(ii) Excessive High-Frequency Trading (HFT)
Simulated: Exploiting latency and bid/ask discrepancies to capture micro-movements.
Live: Network latency, transaction fees, and slippage diminish or eliminate such profitability.
(iii) Front-Running Large Orders
Simulated: Identifying and trading ahead of larger simulated orders to profit from forced moves.
Live: Considered illegal market manipulation with regulatory consequences.
(iv) Churning or Wash Trading
Simulated: Generating artificial trading volume by buying and selling the same position repeatedly.
Live: This behavior is illegal and considered deceptive market activity.
(v) Exploiting Low-Liquidity Stocks
Simulated: Executing large trades in thinly traded stocks without price impact.
Live: These trades would significantly move the price, affecting profitability.
(vi) Layering or Spoofing
Simulated: Placing large, misleading orders to influence prices, then canceling before execution.
Live: A prohibited tactic that violates market integrity rules.
(vii) Exploiting Predictable Simulated Behavior
Simulated: Using systematic flaws in the simulation to generate guaranteed profits.
Live: Real markets are far less predictable and subject to constant external influence.
(viii) Front-Running News or Algorithms
Simulated: Acting on news with unrealistic reaction times or predictability.
Live: Competitive access, latency, and uncertainty limit such advantages.
Vanquish Exploit Policy
At Vanquish, we are committed to providing a fair and realistic simulated trading experience. While exploitative behavior is very rare, we take it seriously to protect the integrity of the platform.
What is considered an exploit?
An exploit is a deliberate and repeated attempt to take advantage of simulation-specific mechanics that would not be possible or profitable in a live trading environment. Common examples include:
Repeatedly trading illiquid or OTM options and receiving fills that ignore real-world market depth
Overfilling bid/ask spreads in options with contract sizes larger than what could fill in a live market
Constructing “risk-free” strategies using unrealistic pricing inefficiencies
Executing oversized trades in illiquid equities without facing price impact
Creating artificial profitability through churning or wash trades
Simulating HFT strategies that rely on non-existent latency or slippage advantages
Does this apply to me?
For most traders—especially those trading using standard day-trading strategies—this policy will not affect you. Our detection systems focus on repeat behaviors that clearly deviate from live market logic. Honest, rule-abiding traders have nothing to worry about.
What happens if someone is found exploiting?
Accounts engaged in exploitation will be permanently banned from the platform.
Any performance accounts involved will forfeit all payouts, as these profits are deemed invalid.
Affected users will receive notification of their violation and ban status.
Can I appeal an exploit-related ban?
No. Exploitation bans are final. Because these cases involve repeated, deliberate abuse of known simulation limitations, there is no appeal process. This is to maintain a fair and consistent standard across the platform.