Question:Is there any trading method restrictions in XTrade online trading platform?

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Answer:

XTrade is mainly a CFD broker which offers more than 700 CFD instruments.

CFD tradings are delivered as OTC derivatives and OTC derivatives often restrict some certain trading methods.

XTrade has mentioned all prohibited trading methods which are as follows:

Snipping

Snipping(or sniping) is referred to an action that will cause a loss or profit for certain traders by manipulating a price feed to extreme point in the chart.

It is also called a “Stop Hunting” though, it has been a topic for Forex traders if some extreme price feeds were a system error or just a extreme market movement.

Some online brokers in Japan, which has got the world biggest OTC market, are actively manipulating price feeds to protect its own profits, and the action called “stop hunting” is known by many investors in the industry.

Some traders have called it is a myth, but some ex-workers of brokers say it is a true price manipulation.

You do not need to worry about this trading restriction as it is not possible unless you have a strong connection with someone in XTrade.

Scalping

Scalping trade is a method to generate small profit in a short time by repeating opening and closing positions frequently.

The definition of scalping trade itself is different for each brokers though, normally if you execute dozens of trades per hour, that may be categorized as scalping.

If you are a scalper, please contact XTrade to find out more details of this restrictions.

Pip-hunting

Pip-hunting is in another word “scalping” as it is a trading method which is aiming for small pips to earn by tradings.

It is a trading method to make small profits with small risks. But the each profit comes with more higher probability than normal trades.

Hedging

“Hedging” in this case includes also arbitrage hedging.

Hedging to moderate investment risks are prohibited in XTrade online trading platform.

Please note that you can not even hedge your positions with different trading accounts from different brokers.

Arbitrage

Arbitrage trading is prohibited by many brokers though, XTrade is one of them.

Unless your broker is a 100% complete STP broker(the actual broker who does not act as a market maker), you will have this restriction at all times.

Arbitrage trading is basically an investment which does not take risks but still make profits by abusing the promotions or systems etc.

XTrade does not allow a trading method that will give you unauthorized advantage to generate profits.

Manipulations or a combination of faster/slower feeds

Price manipulations or a combination of faster/slower feeds is especially prohibited on CFD tradings.

It is also called a “latency arbitrage”.

It is a trading method to make a profit by the difference of price feeds in each broker. Especially when it comes to CFDs, there may be a second or less difference in terms of the speed of price feeds.

In this case, by viewing the faster one, you can predict the next price feed in the slower one.

This is prohibited by probably all online brokers in the world, as it is not a trading but abusing the systems.

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