Scalping & Market Abuse Policy

1. Introduction:

Codart Capital is committed to maintaining a fair, transparent, and stable trading environment for all clients. Certain trading practices, including scalping and other abusive trading behaviors, are not supported by our Liquidity Providers and are therefore strictly prohibited on our trading platforms, and may result in enforcement actions, including account restrictions or termination.

This policy is published for client awareness and forms part of Codart Capital’s trading rules and procedures

2. Scalping & Minimum Holding Time:

Scalping is a trading strategy that attempts to profit from minor price movements over very short periods, typically through high-frequency execution rather than genuine market exposure.

At Codart Capital:

  • All trades must be held for a minimum of 180 seconds.
  • CAny trade opened and closed in less than 180 seconds will be classified as scalping /stale trading
  • Any trade open and hedge in less than 180 seconds is also included in this category
  • Such trading behavior is considered market abuse and is strictly prohibited.

This rule applies to all trading instruments offered by Codart Capital, including but not limited to:

  • Foreign Exchange (FX)
  • Metals
  • Indices
  • CFDs
  • Crypto CFDs

3. Stale Trading:

Trades that are opened and closed within a timeframe below the 180-second minimum holding period are considered stale trades.

Stale trading is viewed as an attempt to exploit:

  • Pricing delays
  • System latency
  • Short-term price inefficiencies

Such practices are strictly prohibited on Codart Capital platforms.

4. Idle Prices & Misquotes:

Codart Capital operates under an agency execution model and automatically hedges client positions with Liquidity Providers

On rare occasions, price feeds may become::

  • Idle (delayed or non-updating prices), or
  • Misquoted (skewed or invalid prices due to technical or external factors).

In such cases, Codart Capital reserves the right to:

  • Void affected trades, treating them as if they never occurred
  • Reverse any profits arising from such trades
  • Ensure that no unintended open positions remain

Codart Capital will not be liable for losses arising from such trades.

5. Enforcement & Actions:

If Codart Capital, either at its own discretion or upon instruction from its Liquidity Providers, determines that a client has engaged in scalping, stale trading, or other abusive trading practices, Codart Capital may take one or more of the following actions:

  • Issue a warning or notice to the client
  • Void trades identified as violating this policy
  • Apply account restrictions or modify trading conditions
  • Cancel IB commissions related to invalid trades
  • Terminate the trading account in cases of serious or repeated violations

These actions are taken to protect market integrity and platform stability. Codart Capital’s determination of a violation is final and binding.

6. Introducing Broker (IB) Commissions:

  • No IB commission will be paid on trades that are classified as scalping, stale trades, or trades that are voided.
  • Any commission generated from such trades may be cancelled or reversed.

7. Trader Responsibilities:

Clients are expected to:

  • Trade responsibly and in accordance with fair market practices
  • Avoid exploiting system inefficiencies, pricing delays, or execution anomalies
  • Monitor trading behaviour to ensure compliance with this policy
  • Promptly report any pricing or system issues to Codart Capital

8. Monitoring & Data Privacy:

All trading activity on Codart Capital platforms is continuously monitored to ensure compliance with this policy.

Any data collected is handled in accordance with Codart Capital’s Privacy Policy. While robust security measures are in place, Codart Capital cannot guarantee protection against all cybersecurity risks.

9. Risk Warning:

Trading involves significant risk. High-frequency and short-duration trading strategies increase exposure to market and execution risks. Profits are not guaranteed, and clients must be prepared to incur losses.

10. Policy:

This policy is published for client awareness. By trading with Codart Capital, clients are expected to comply with the rules outlined herein. Failure to do so may result in enforcement actions as described above.

Codart Capital retains the right, at its sole discretion, to alter, update, or amend this policy.