Minimum distance

Hi,

I was reading the terms and the « Latency Trading » and it is vague. Is there a minimum distance of profit required? I like to play safe with a distance of 1 to 10. Would that be a problem with higher benefits ? When do T212 consider something isn’t right ?

Regards,
Al.

Hello! Since you can place your order and the system approves your criteria - it is all good. Keep in mind that every instrument has different required minimum pending distance & there is not such a condition as a minimum profit. However, you should be aware that Scalping is forbidden at our platform.

Scalping ” means a speculative type of trading where the opening and closing of a position is executed within a very short timeframe (e.g. five minutes or less);

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Thank you Martin.

I have others question, just for the sake of clarification:

  1. What if i choose a small distance with a certain amount of take profit, and suddenly the market rockets up and my order gets closed sooner than the minimum 5 minutes, would that be considered scalping ?

  2. If I am aiming at a certain price target, but i feel the market is suddenly going to plunge abd wish to close my order with a profit. All of this under the 5 min bar, is it also considered scalping ?

It would be a shame to have to wait 5 minutes and see potential loss just for the sake of waiting a minimum of time…

Regards,

I would say that scalping is trading behavior specializes in profiting off small price changes in many trades for a short period. Nevertheless, If you have several trades in 5 minutes from their opening, it won’t be treated as abusive trading style.

Restrictions may occur if we notice a significant amount of trades accompanied by holding time less than several minutes.

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@Martin
Is there an exact definition of scalping? What is the exact time frame for the position to be considered scalping and abusive trading style? I’ve seen in the T&C just “(e.g. five minutes or less)”… but the problem is the “e.g.”, which suggest one of the examples for the scalping, but no the exact definition. If I have e.g. 100 trades within 6-10 minutes time frame each, would you have the right to block my account? I am not staying that I’m intending to do so, I would like just to clarify everything before I start trading for the very first time.
Also, I would be more than grateful to learn about any other important restrictions I should be aware of while trading and investing.
Thank you!

@global.nomad What you see in T&C is our understanding of scalping.
Having 100 trades with a combined avg. hold time of 6-10 minutes doesn’t meet that definition.
Also, this doesn’t mean that if you make one trader under 5 minutes, we’ll immediately consider it a breach of the agreement, It’s only an issue if it’s systematic & that’s your exclusive way of trading.

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David, I have a follow up question. Currently I am testing some strategies on ProQuant connected to practice account. I noticed the strategy I am testing now (forex) is closing positions within 2 minutes. Not all the time but it happens. Is there a sort of level what is considered scalping?

I will keep an eye on this strategy on a larger number of trades to see what the average hold time is.

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Did you manage to get an answer for this question?

Hey @chantal. We don’t think that would be an issue. As long as there is no predominant pattern in those short trades visualizing an effort to abuse imbalances, your strategy is fine with us.

Thanks. It’s not my strategy. Subscribed to some. Just wanted to be sure.

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