CFD Trading Rules
1. Introduction
This notice is intended to help you understand the execution mechanism, fair use principles, and criteria for identifying abnormal trading behavior in Contract for Difference (CFD) trading on the platform. This notice forms part of the platform's User Agreement. Please read it carefully before using the platform's services.
By conducting CFD trading on the platform, you are deemed to have understood and agreed to all terms of this notice.
2. Core Assessment Principle
The sole core criterion for determining whether a trade constitutes normal market behavior is whether the profit logic comes from genuine market judgment, rather than structural differences in the system.
Acceptable trading: Profits are derived from genuine judgments on market direction, volatility, events, or timing. Whether you are a trend trader, event-driven trader, quantitative strategy user, or high-frequency trader, the platform supports your trading activity as long as the profit logic is based on market analysis.
Abnormal trading requiring attention: Profits are primarily derived from exploiting quote delays, system vulnerabilities, mechanism design boundaries, or account structures to obtain risk-free or extremely low-risk returns.
3. Description of Abnormal Trading Behavior
The common feature of the following behavior types is that profits do not come from market judgment, but from structural system vulnerabilities or mechanism design boundaries. Once identified by the liquidity provider, such behavior will trigger risk-control measures.
Important note: The descriptions below refer to abnormal behavior characteristics under specific circumstances and do not represent a blanket rejection of any particular strategy type. The key assessment standard is whether the profit logic comes from genuine market value judgment.
3.1 Market manipulation
A client manipulates the prices of related products in the underlying market to affect CFD quotes and generate large short-term profits with prior knowledge of price movements. Such behavior disrupts the price discovery mechanism and constitutes fraudulent market manipulation.
3.2 Structural hedging arbitrage
A client uses high leverage and the negative balance reset mechanism to simultaneously hold long and short positions in a product. One position generates profit while the other position is reduced to zero loss, resulting in a positive expected return for the overall account while bearing extremely low actual market risk.
3.3 Gap arbitrage
A client engages in speculative full-position trading shortly before the end of the product's daily trading session, using the negative balance reset mechanism to create a risk-reward ratio greater than 1. When a price gap occurs, the client is more likely to obtain high profits. Such trading behavior is highly concentrated around market close or market open gap periods.
3.4 News event arbitrage
A client opens positions before market information is released to take advantage of potential price gaps, achieving an effect equivalent to gap arbitrage. Alternatively, after the information is released, the client uses automated tools to capture market direction with abnormal speed and precision, thereby achieving an arbitrage effect. Such trading behavior is highly aligned with the timing of news releases.
3.5 Low-liquidity arbitrage
A client exploits price movements during low-liquidity periods or in low-liquidity products by repeatedly placing small high-frequency orders to obtain fills that are clearly more favorable than fair prices.
3.6 Latency arbitrage
A client exploits temporary delays in the quote system or differences in update speeds between quote sources to execute orders before the system is synchronized, thereby gaining prior knowledge of market prices and achieving risk-free arbitrage.
3.7 Quote error arbitrage
A client exploits incorrect prices during abnormal quote periods, such as flash crashes or abnormal spreads, by intentionally placing a large number of orders during the abnormal period to conduct arbitrage. The trading pattern is highly aligned with the timing of abnormal quotes.
3.8 High-frequency trading abuse
High-frequency trading itself is a normal execution method. However, when high-frequency trading is used to carry out any of the above arbitrage behaviors, such as latency arbitrage or quote error arbitrage, it will be considered a serious violation and must be flagged for special attention.
4. Risk-Control Review and Handling
4.1 Triggering conditions
Any of the following circumstances may trigger a risk-control review:
- The system automatically detects a continuous abnormal trading pattern.
- The liquidity provider formally provides feedback or requests the platform to take action.
- The operations team identifies suspicious patterns during manual review.
4.2 Possible measures during the review period
During the review period, the platform may take the following measures:
- Temporarily adjust leverage or margin parameters.
- Restrict opening positions in specific products.
- Suspend the settlement of rewards or campaign benefits generated from the relevant trades.
- Request the client to provide further explanations of the trading strategy or related information.
This process only involves individual accounts or orders and does not affect the daily use of the platform by the vast majority of normal traders.
4.3 Handling measures
Depending on the nature, severity, intent, and frequency of the violation, the platform may take one or more of the following measures:
Level | Applicable Scenario | Measure |
Reminder and Education | Minor, suspected unintentional, or first-time cases | Send a general warning notice |
Trading Restrictions | Improper behavior is confirmed but relatively minor | Reduce leverage, restrict products, or prohibit new positions |
Financial Adjustment | Serious intentional violation | Deduct all or part of the improper profits |
Account Action | Serious or repeated violations |
5. Client Communication
If your account triggers a risk-control review, the platform's Customer Service team will communicate with you according to the standardized process. To ensure the effectiveness of the risk-control rules, the platform will not disclose specific determination details or internal detection mechanisms.
If you disagree with the platform's measures, you may submit an appeal through the official Customer Service channels. The platform will conduct a review together with the liquidity provider, and the review result will be final.
6. Our Position
The platform aims to build a long-term, stable, and sustainable professional trading environment.
We welcome:
- Trading strategies based on genuine market judgment
- Professional and transparent trading behavior
- Order flow that helps improve overall liquidity quality
We continue to invest in:
- Execution quality optimization
- Liquidity environment improvement
- Customer service enhancement
We look forward to working with all participants to maintain a fair and healthy trading market.