All-or-Nothing & Gambling-Based Trading
Lark Funding strictly prohibits all-or-nothing trading and gambling-style behavior. All-or-nothing trading refers to a style of trading where a trader could breach, or come close to breaching, the drawdown limits in a single trade due to the large volume of positions, lots executed, or margin utilization. This includes trading during normal market hours and/or during high-impact news events.
We consider this form of trading to be similar to gambling. As a result, it is not allowed.
Risk Management Guidelines:
As a general guideline, we recommend not exceeding the following overall margin utilization:
Forex: 50%
Metals: 50%
Indices: 75%
Oils: 75%
Crypto: 75%
Stocks: 75%
We also recommend a maximum risk per simulated trade idea of up to 1.5%.
If you are found to be continuously engaging in such activities, the Company reserves the right to immediately close your account. Such closure may include the forfeiture of any fees owed to you by the Company, at the Company’s sole discretion.
Enforcement via Gain Limits:
To enforce this policy, the following gain limits apply:
The daily and/or per-trade gain limit is set to $10,000.
Gains are calculated based on your balance and equity at 5:00 PM EST.
Trades executed at similar times or closed in several parts will count as a single trade.
Gains made across multiple phases on a single day will be considered toward the daily gain limit.
Example: If trading occurs in both Phase 1 and Phase 2 on the same day, the combined gains from that day will count toward the daily gain limit.
Consequences for Exceeding the Gain Limit
Challenge Account
A single violation requires a restart from Phase 1.
A free Evaluation will be issued.
No refunds will be provided.
Simulated Funded Account
Trades exceeding the $10,000 limit will be excluded from payout.
Three violations result in an immediate account breach with no payout.
Our team is actively working on automation to enforce this rule. Until then, all trades will be evaluated manually.
High-Frequency Trading
High-Frequency Trading (HFT) involves the use of advanced computer algorithms and rapid telecommunication networks to execute a vast number of trades in mere split seconds.
Lark Funding does not allow HFT as it may lead to market manipulation, provide unfair advantages, and could potentially destabilize the market. Any trader identified practicing HFT will breach Lark Funding's Terms of Use and will lose their trading privileges on our platform.
Reverse Trading / Group Hedging
Hedging or executing reverse trades within a single account is permitted.
What is prohibited?
Executing a buy trade on one account and a sell trade on another account, or vice versa, is strictly prohibited.
Group hedging across multiple accounts and/or coordinating opposing positions at one or multiple prop firms practice is strictly prohibited.
Copy Trading
Copy trading is only permitted if the trader owns and controls all accounts involved.
What is not allowed?
Group trading of any kind
Signal services or account-passing services
Any method that bypasses individual trading strategy
Trades that mirror or closely align with another trader or group across multiple accounts
Holding Into Earnings, Dividends, or Other Corporate Actions
Holding a demo Single Share Equity CFD position through an earnings release, dividend distribution, or any other corporate action relating to the underlying equity is strictly prohibited.
To avoid being in breach of this rule, clients must close all such Single Share Equity CFD positions by 3:50 pm Eastern Time on the day of the dividend, earnings release, or corporate action if it is an aftermarket event, or on the preceding trading day if the event occurs before market open.
Violation of this rule will constitute an immediate, hard breach of your account, and any gain or loss on the affected position will be removed from all gain calculations.