Prohibited Practices

Micro scalping

• Micro scalping refers to a trading tactic where a trader attempts to capture very small price movements using very large size within extremely short time frames, often just a few seconds.
• Accounts may be flagged if more than 50% of profits are generated from trades held for 5 seconds or less. If bad faith activity is confirmed following a manual review, a written warning may be issued.
• Lucid Trading Genuine scalping is permitted as long as it reflects realistic market activity and order execution.

Hedging

• Hedging refers to the use of multiple accounts to take opposing positions on the same trade. This tactic artificially reduces risk by ensuring one account profits regardless of the market's direction and is a form of system manipulation, not genuine trading.
• Lucid Trading strictly prohibits all forms of hedging, including hedging across multiple accounts held by the same user.
• Lucid Trading Traders also cannot go long/short different contracts in separate accounts with correlated assets — for example, going long ES in one account and short NQ in a separate account is strictly prohibited.

High-Frequency Trading (HFT)

• High-frequency trading is a type of automated trading strategy that involves submitting and executing a high volume of trades within extremely short time frames, often measured in seconds or milliseconds. These strategies are typically powered by algorithms and designed to exploit minute price inefficiencies at speed.
• To maintain a reliable and equitable trading environment, HFT is strictly prohibited.
• Lucid Trading uses automated detection and may remove profits, close accounts, and restrict access for repeated offenses.

Inactivity Rule

• Accounts that have not been traded in 30 calendar days will be deemed abandoned and will be permanently deleted.
• Breached accounts will be automatically deleted after 30 days if not reset. Traders can manually purchase a reset at any time before that 30-day period expires.