Trading Restrictions
Understand the strategies that are prohibited to ensure fair and compliant trading at TX3 Funding Forex.
At TX3 Funding Forex, we support diverse trading styles. However, certain strategies are strictly prohibited as they exploit the simulated environment or create unfair advantages. Any trader found using these methods may have their challenge or funded account terminated for breaching the Terms of Use.
Prohibited Trading Strategies
Strategy | Description |
Grid Trading | Involves holding hedging positions across multiple accounts to secure profits on at least one side. |
Latency Arbitrage | A high-frequency technique exploiting price discrepancies caused by delays in execution speed across trading platforms. |
Reverse Arbitrage | Taking advantage of pricing inefficiencies across related financial instruments. Unlike traditional arbitrage, this strategy involves betting against perceived market mispricings. |
Tick Scalping | Trading on very small price movements ("ticks") with extremely short holding periods, often seconds or minutes. |
Account Management Violations | Using multiple accounts not associated with the trader to conduct trades, or trading on behalf of others under different identities. This also includes unauthorized access or shared device access to accounts belonging to multiple identities. |
Signal/Copy Trading | Replicating the trades or strategies of others, whether individuals or trading groups. |
High-Frequency Trading (HFT) | Executing a large number of trades in very short periods. Traders should not place an abnormally high number of trades per hour.
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Order Splitting/Stacking | Dividing one trade into multiple smaller trades executed simultaneously or in succession to obscure intent or mislead the market. This includes patterns of small trades mimicking a larger trade. |
Martingale | Increasing position size after each loss to recover losses or magnify winnings. TX3 Funding Forex evaluates martingale risk based on total notional exposure, not symbol-specific exposure. Formula: Notional Volume (USD) = Lot Size × Contract Size × Asset Price. |
Risk Exploits and Manipulation
Exploit | Description |
Hedging Between Accounts | Offsetting losses in one account by opening opposite positions in another account. |
Guaranteed Limit Orders | Orders that exploit guaranteed pricing execution outside of intended market rules. |
Data Feed Manipulation | Distorting or interfering with live data feeds to make decisions not based on genuine market conditions. |
Trading on Delayed Charts | Making trading decisions from price data that is intentionally delayed rather than real-time market prices. |
Macroeconomic Exploits | Trading exclusively around high-impact macroeconomic releases to exploit price spikes in ways considered non-compliant. |
Rule Spotlight: 3% Loss Limit Per Trade
Each overlapping group of trades must not exceed 3% of the initial account balance.
This restriction applies to the 2-Phase Pro funded stage.
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