Gambling Behaviour
At X-Funded, we prioritize disciplined and responsible trading practices. Gambling-like behavior, including placing high risk trades without proper analysis is strictly prohibited. Such practices weaken risk management, significantly increase financial exposure and are inconsistent with sustainable long term trading.
No Traders are allowed to risk more than 1% of their capital size at any given time, supporting consistent and controlled performance over the long run.
Trading practices such as risking the full or nearly the full daily loss limit on one or multiple simultaneous trades are considered gambling behavior. This type of activity does not reflect a structured or sustainable trading strategy and demonstrates inadequate risk management, making it unsuitable for long-term trading success.
Copy Trading
At X-Funded, copy trading is not allowed between X-Funded Challenge or Funded Accounts to ensure fairness, transparency, and compliance with the platform’s policies.
Group Trading
Group trading refers to coordinated trading activity between multiple individuals or accounts acting together to execute similar or identical trades with the intention of gaining an unfair advantage or bypassing trading rules.
At X-Funded, organized or coordinated trading between multiple accounts is strictly prohibited when it is used to manipulate trading outcomes, share risk across accounts, or circumvent platform limitations. Such behavior undermines fair trading conditions and does not reflect independent trading performance.
Accounts identified as participating in coordinated or group-based trading activity may be subject to investigation, and appropriate actions including warnings, trading restrictions, profit adjustments, or account termination may be applied where applicable.
Algorithmic or Bots Trading
Algorithmic or Bot Trading refers to the use of automated software or expert advisors (EAs) that execute trades based on predefined rules without manual intervention.
At X-Funded, algorithmic strategies designed to exploit platform weaknesses, execution delays, pricing errors, or to generate abnormal trading activity are strictly prohibited. Bots that create excessive risk exposure or bypass trading rules are not considered responsible or sustainable trading practices.
Any automated trading used to gain an unfair technical advantage or violate trading policies may result in warnings, trading restrictions, or account termination where applicable.
High-Frequency Trading
High-Frequency Trading (HFT) is a trading approach that utilizes advanced expert advisors and ultra-fast communication networks to execute a very large number of trades within milliseconds to seconds. The objective of this strategy is to profit from extremely small price movements and short-term market inefficiencies. Although HFT may appear attractive due to the potential for rapid gains, it carries significant risks and may negatively impact overall market conditions.
HFT activity can contribute to price distortion and create artificial signals of supply or demand. By placing and executing a high volume of orders within extremely short timeframes, this trading behavior may produce misleading market activity that can influence other participants’ decisions. Additionally, the excessive order flow generated by high-frequency trading can affect market stability, as rapid order placement and cancellation may increase volatility and lead to unpredictable price movements.
Furthermore, the large number of transactions executed in a short period can place substantial strain on trading infrastructure, potentially causing server congestion or disruptions that may impact platform performance and overall trading operations.
Martingale Trading
Martingale Trading is a strategy where a trader increases position size after a losing trade in an attempt to recover previous losses when the market reverses. The approach typically involves doubling or significantly increasing trade volume following each loss.
At X-Funded, Martingale trading is prohibited because it exposes accounts to rapidly escalating risk and can lead to substantial losses within a short period of time. This strategy relies on continuous market reversal rather than proper analysis and risk management, making it unsustainable for long-term trading.
Trading practices that involve progressively increasing lot sizes to recover losses are considered high-risk behavior and may result in warnings, trading restrictions, or account termination where applicable.
Example:
A trader opens a BUY trade on EURUSD with a 0.10 lot position. The trade hits stop loss and closes in a loss. Instead of maintaining the same risk, the trader increases the next position size to recover the previous loss.
- Trade 1: 0.10 lot → Loss
- Trade 2: 0.20 lot → Loss
- Trade 3: 0.40 lot → Loss
- Trade 4: 0.80 lot → If the trade wins, it aims to recover all previous losses plus a small profit.
While this approach may recover losses if the market eventually reverses, a continued move against the trader can rapidly increase exposure and lead to significant drawdown or account loss due to the continuously increasing position sizes.
Grid Trading
Grid trading is a strategy in which a trader places multiple buy and sell orders at predetermined price levels above and below the current market price. The objective is to capture profits from normal market fluctuations as price moves between these levels.
At X-Funded, grid trading is prohibited because it can generate artificial trading activity and expose accounts to excessive risk. During strong one-directional market movements, multiple positions may be triggered simultaneously, leading to compounded losses. This approach conflicts with X-Funded’s principles of fair, disciplined, and risk-controlled trading.
Example: A trader places buy orders at $1,000, $1,005, and $1,010, while setting sell orders at $1,015, $1,020, and $1,025. If the market oscillates within this range, the trader may capture small profits from price movements. However, if the market drops sharply below $1,000, all buy positions may incur losses at the same time, potentially resulting in significant drawdown.
Latency Trading
Latency trading refers to the practice of executing trades by exploiting delays in market data feeds or order execution in order to obtain risk-free or near-guaranteed profits. At X-Funded, latency trading is strictly prohibited as it violates the principles of fair and transparent trading.
This practice involves taking advantage of price discrepancies caused by execution delays rather than genuine market analysis. Such behavior creates an unfair advantage over other traders and undermines market integrity.
Example: A trader detects a delay between the displayed market price and actual execution. They rapidly place multiple trades to benefit from the temporary price difference before the system updates. This activity generates artificial trading pressure and disrupts fair market conditions, making it a violation of X-Funded’s Terms & Conditions.
Use of Platform or Data Freezing Due to Demo Server Errors
Exploiting platform malfunctions or data freezing caused by demo server errors to gain an unfair trading advantage is strictly prohibited. Such behavior compromises fair market conditions and may mislead trading results. Traders found intentionally taking advantage of technical issues will be subject to investigation, and appropriate actions, including restriction or removal of access to demo servers may be applied. In the event of technical problems, traders are expected to promptly report the issue to X-Funded Support.
Account or Device Sharing
Account Sharing refers to the unauthorized practice of allowing another individual or entity to access, use, or operate a trading account on behalf of the registered account holder. This includes sharing login credentials, reselling accounts, or using shared devices with other traders, regardless of the relationship.
At X-Funded, account or device sharing is strictly prohibited as it violates the Terms & Conditions. A zero-tolerance policy is enforced to protect platform security, ensure fair trading practices, and maintain compliance standards.
Multiple IP Addresses
Multiple IP Addresses refer to trading activity conducted from significantly different or inconsistent internet locations that indicate potential account sharing, third-party access, or unauthorized account usage.
At X-Funded, the use of multiple or suspicious IP addresses that suggest an account is being accessed by more than one individual is strictly prohibited. Consistent account access is required to maintain security, fairness, and compliance standards. Any abnormal IP activity may trigger investigation and could result in warnings, trading restrictions, or account termination where applicable.
