Amid the general public, there exists a misconception equating financial market trading with gambling. However, this belief is unfounded and is often perpetuated by traders exhibiting gambling-like behavior. To maintain the integrity of our trading community and foster an environment conducive to responsible trading, it becomes imperative to address such tendencies.
Certain traders, driven by the allure of quick profits, may adopt high-risk strategies that ultimately diminish their chances of success. While financial markets inherently involve risks, it is crucial to draw a clear distinction between legitimate trading practices and gambling tendencies.
Here at Quintessenceoptions, we are dedicated to safeguarding our traders and promoting opportunities for those who approach the market responsibly. In cases where we suspect a trader is utilizing our offerings for gambling purposes, we reserve the right to implement measures aimed at mitigating associated risks. Such measures may include adjustments to leverage or alterations to earnings. It is important to note that these actions will be taken judiciously and only after a thorough evaluation by our risk management team, targeting behaviors falling within certain prohibited categories.
Violations and Consequences:
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Account Rolling/Churning:
Description: Acquiring the maximum number of evaluation accounts and attempting to complete them in a rolling style, sacrificing accounts as necessary.
Example: A trader acquires multiple evaluation accounts simultaneously and engages in a strategy where they intentionally allow some accounts to fail while focusing on completing others. This practice, known as account rolling, aims to pass evaluations without genuine trading skills.
Consequences:
- First Strike: Yellow Card (Warning).
- Second Strike: Yellow Card (Reduction in leverage for 20 business days, delayed payouts, check on all accounts for additional violations).
- Third Strike: Red Card (Reduced leverage for 60 business days, delayed payouts, check on all accounts for additional violations).
- Fourth Strike: Red Card (Reduction in leverage for all accounts for 120 business days, delayed payouts, check on all accounts for additional violations).
- Fifth Strike: Black Card (Ban from the platform).
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Gambling/Betting Behavior:
Description: Engaging in trading resembling a big gamble or bet without a clear plan or strategy.
Example: A trader goes all-in on a single trade without conducting a thorough analysis or having a risk management plan. They rely on luck rather than informed decision-making, treating the market like a casino rather than a place for strategic trading.
Consequences:
- First Strike: Yellow Card (Warning).
- Second Strike: Yellow Card (Reduction in leverage for 20 business days, delayed payouts, check on all accounts for additional violations).
- Third Strike: Red Card (Reduction in leverage for 60 business days, delayed payouts, check on all accounts for additional violations).
- Fourth Strike: Red Card (Reduction in leverage for all accounts for 120 business days, delayed payouts, check on all accounts for additional violations).
- Fifth Strike: Black Card (Ban from the platform).
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Trade Stacking (All-or-Nothing Trading Style):
Description: Opening a large number of positions consecutively on a single instrument.
Example: A trader, in pursuit of quick profits, opens a series of consecutive positions on the same currency pair without considering market conditions or managing risk. This “all-or-nothing” trading style involves risking a significant portion of their account on each trade.
Consequences:
- First Strike: Yellow Card (Warning).
- Second Strike: Yellow Card (Reduction in leverage for 20 business days, delayed payouts, check on all accounts for additional violations).
- Third Strike: Red Card (Reduction in leverage for 60 business days, delayed payouts, check on all accounts for additional violations).
- Fourth Strike: Red Card (Reduction in leverage for all accounts for 120 business days, delayed payouts, check on all accounts for additional violations).
- Fifth Strike: Black Card (Ban from the platform).
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Group Hedging:
Description: Trading with opposite positions on the platform.
Example: Two traders collaborate to exploit the platform by taking opposite positions on the same currency pair simultaneously. One trader goes long while the other goes short, leading to a net-zero position on the platform but risking the integrity of fair and transparent trading.
Consequences:
- First Strike: Yellow Card (Warning).
- Second Strike: Yellow Card (Reduction in leverage for 20 business days, delayed payouts, check on all accounts for additional violations).
- Third Strike: Red Card (Reduction in leverage for 60 business days, delayed payouts, check on all accounts for additional violations).
- Fourth Strike: Red Card (Reduction in leverage for all accounts for 120 business days, delayed payouts, check on all accounts for additional violations).
- Fifth Strike: Black Card (Ban from the platform).
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Overleveraging:
Description: Exceeding appropriate levels of leverage.
Example: When a trader uses excessive leverage relative to their account size, magnifying both potential gains and losses.
Consequences:
- First Strike: Yellow Card (Warning).
- Second Strike: Yellow Card (Reduction in leverage for 20 business days, delayed payouts, check on all accounts for additional violations).
- Third Strike: Red Card (Reduction in leverage for 60 business days, delayed payouts, check on all accounts for additional violations).
- Fourth Strike: Red Card (Reduction in leverage for all accounts for 120 business days, delayed payouts, check on all accounts for additional violations).
- Fifth Strike: Black Card (Ban from the platform).
Additional Measures:
Economic Events Restriction:
- From the 3rd strike onward, traders cannot trade economic events on affected accounts.
Strike Removal Condition:
- To have a strike wiped off, a trader must complete the penalty box’s entire duration without another violation. Regardless if the violated account becomes breached.
Escalation of Strikes:
- Violating a separate, unrelated rule can lead to the progression of strikes, regardless of the initial violation.
Payout Rejection or Reduction:
- The firm reserves the right to reject a payout in its entirety or reduce the payout amount depending on the severity of the violations.
The examples provided above are illustrative and aim to convey the general concepts associated with each violation. The list of violations is not exhaustive, and actual scenarios leading to violations may vary. Traders should recognize that risk management policies encompass a broad range of behaviors, and adherence to ethical trading practices is essential. The mentioned examples serve as a guide to understanding potential violations but do not limit the scope of what may constitute a breach of risk management guidelines. Traders are encouraged to thoroughly review the specific risk management and strike policy of their trading platform for a comprehensive understanding of acceptable practices and consequences.
Our risk management and strike policy provides a clear framework for maintaining a responsible trading environment on our platform. We emphasize the importance of responsible trading practices for the long-term success of our traders.
