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Micro-Scalping Policy

What is micro‑scalping, and is it allowed at The Trading Pit?
Micro‑scalping is strictly prohibited under The Trading Pit’s trading rules across all account types and trading instruments. It refers to a style of trading that relies on opening and closing positions in a matter of seconds to capture very small, rapid price movements, which is considered high risk and disruptive to fair and stable market execution.
 
What is considered micro‑scalping?
Micro‑scalping is defined as opening and closing trades within approximately 10–15 seconds with the primary intention of capturing very small, ultra‑short‑term price moves. When this pattern becomes a core component of a trader’s strategy, it is classified as micro‑scalping and is not permitted on The Trading Pit’s platforms.
 
How does The Trading Pit detect micro‑scalping?
The Trading Pit’s monitoring systems review the holding time and structure of trades on each account. An account may be flagged when a significant portion of profitable trades (around 40% or more) comes from ultra‑short‑term positions, at which point the behavior is deemed to fall under the micro‑scalping rule.
 
Does closing trades at a loss violate the micro‑scalping rule?
No. Closing trades at a loss at any time is fully allowed and does not trigger the micro‑scalping rule. The rule focuses specifically on patterns where a substantial share of profitable trades is generated from very short‑duration entries and exits.
 

What actions may be taken if micro‑scalping is detected?

If a trader does not immediately adjust their strategy after being flagged for micro‑scalping, the Risk Team may take action on the relevant account. The impact depends on the account type:​

  • Challenge Accounts: If micro‑scalping is detected, you will receive a formal warning.

  • Earning Accounts: If micro‑scalping is detected, you will receive a warning, and any profits generated from this activity will be deducted from your account.

Persistent non‑compliance or repeated violations may also lead to denial of payout or upgrade requests and, in severe cases, account termination.

Does this rule apply to all accounts and instruments?

Yes. Full compliance with the micro‑scalping policy is required across all current and future accounts, regardless of the trading instrument (CFDs, Futures, or Stocks). The rule is part of The Trading Pit’s broader commitment to fair execution and platform integrity.
 
What should I do to remain compliant?
 
Traders are expected to review their strategies and ensure they do not rely on ultra‑short‑term (10–15 second) trade execution as a primary method of generating profits. Necessary adjustments must be made promptly so that all trading activity remains fully aligned with The Trading Pit’s trading rules on every account.