TLDR: Yes, scalping is allowed at FundedNext. However, tick scalping, which involves extremely rapid-fire trades aimed at exploiting micro price movements, is strictly prohibited due to its potential for abuse and market disruption.
Scalping is Allowed, but with Limitations
FundedNext supports various trading styles, including scalping, as long as the strategy aligns with our fair use policies and does not involve abusive practices.
Scalping means entering and exiting trades quickly (within minutes) to take advantage of small price moves.
It is permitted in both Challenge Accounts and FundedNext Accounts.
Manual and algorithmic scalping are allowed as long as they don’t resemble tick-level exploitation.
What is Tick Scalping and Why is it Not Allowed?
Tick scalping is an ultra-fast strategy where traders attempt to profit from minute price changes, often just a few ticks, using automation and ultra-fast execution speeds.
Key Characteristics of Tick Scalping:
High-frequency, low-duration trades: Trades last seconds or milliseconds.
Automated execution: Often relies on EAs or bots.
Micro-profit targeting: Aims for profits of just a few pips/ticks per trade.
Order flooding: Generates rapid buy/sell positions that may manipulate order books or market pricing.
Why FundedNext Prohibits Tick Scalping:
Unfair advantage: Exploits price movement before other traders can react.
Market disruption: Creates artificial volatility and can front-run slower participants.
Server strain: The high frequency of trades and cancellations burdens the trading system.
Example of Prohibited Tick Scalping
A trader uses a bot to open and close positions on XAUUSD within milliseconds, repeatedly targeting 0.1 pip movements.
While it may appear to be harmless micro-profit trading, this behavior disrupts pricing, liquidity, and server performance, and therefore violates FundedNext rules.
Trade Responsibly
While scalping is a legitimate strategy, traders must avoid tick-based automation and excessive high-frequency activity. FundedNext encourages all traders to focus on consistent, fair, and ethical trading behavior.
If you’re unsure whether your strategy is allowed, it’s best to review our Prohibited Trading Strategy Policy for full details.