What is it?
Microscalping involves taking trades to capture extremely small price movements on very large size within a very short amount of time. Traders engaging in this type of activity are often trying to gain an unfair advantage by manipulating simulated fills.
This is different than genuine scalping. Genuine scalping is when traders are in and out of trades for smaller moves, but they are not trying to manipulate simulated fills.
Why can’t I do it?
Microscalping is not a genuine or sustainable trading strategy that can be implemented in the live environment. We are looking to provide traders with a platform to develop their skills and build consistent strategies, not to exploit loopholes. Allowing such practices would compromise the firm’s ability to identify truly profitable traders and could ultimately threaten the sustainability of the firm.
What happens if I do it?
Lucid Trading has implemented automated systems to flag the following:
More than 50% of your profits are generated from trades with a duration of 5 seconds or less.
If your account is repeatedly flagged for the above activity, we will perform a manual review of your account to verify that there is no activity taking place that violates our company policies. After our review, we may issue a written warning.
If you receive a written warning and the activity persists, all profits from Microscalping activity will be forfeited. If it continues you will be restricted from using our services. You may request an appeal if you believe the activity has been misidentified