All-or-Nothing & Gambling-Based Trading
Lark Funding strictly prohibits all-or-nothing trading and gambling-style behaviour.
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 or lots executed. 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.
Prohibition of Gambling Practices:
Engaging in inappropriate risk management practices, such as gambling, “all-in” trading, or excessively leveraging positions, is strictly prohibited. Trading activity that resembles gambling—such as consistently placing trades prior to news releases or other binary events—will not be tolerated.
Excessive risk-taking and gambling are defined by the percentage of an account risked in a single trade or across a series of trades or positions. An “all-in” trade refers to committing all or a substantial portion of available capital or margin to a single trade. Similarly, excessive and improper use of leverage occurs when a trader risks a significant portion of their account in one trade or across a series of one-directional trades and positions.
If you are found to be engaging in such activities, the Company reserves the right to immediately close your account and such closure may include the forfeiture of any fees owed to you by the Company, in the Company’s sole discretion.
Enforcement via Gain Limits
To enforce this policy:
The daily and/or per-trade gain limit is set to $10,000.
Your balance is calculated at 5 PM EST. Trades executed at similar times or that are closed in several parts will count as a single trade.
If you exceed this threshold:
In a Challenge Account:
A single violation requires a restart from Phase 1.
A free Evaluation will be issued, but no refunds will be provided.
In a Simulated Funded Account:
Trades exceeding the $10,000 limit will be excluded from payout.
3 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 upon a payout request.
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.
Hedging & Arbitrage Between Accounts
It is strictly prohibited to hedge between two or more Lark Funding Evaluation accounts or hedge with any third-party company.
If we identify or have reason to believe this has occurred, your accounts will be breached, and you'll be permanently restricted from taking further Evaluations with us.
We expect and require all traders to operate on the Lark Funding platform with integrity in compliance with relevant laws, regulations, and our Terms of Use.
Holding Into An Earnings Release
Holding a demo Single Share Equity CFD position into an earnings release pertaining to that underlying equity is strictly prohibited.
To avoid being in breach of this rule, you must close all such Single Share Equity CFD positions by 3:50 pm Eastern Time on the day of the release if an aftermarket release, or on a preceding day if a before-market open release.
Violation of this rule will constitute an immediate, hard breach of your account, and any gain or loss on said position will be removed from any gain calculations.