NexGen Futures Trader Detailed Rules and Code of Conduct Document

Introduction

NexGen Futures Trader is committed to fostering a trading environment that is fair, transparent, and compliant with regulatory standards. This detailed document outlines the specific rules and code of conduct that all traders must adhere to in order to participate on our platform. Compliance with these rules ensures the integrity of our trading operations and contributes to the success and stability of our trading community.

1) Prohibition of Gambling or Exploitative Practices

1. Definition and Prohibition: NexGen strictly prohibits any trading activities that could be construed as gambling or gaming the system. Prohibitions include, but are not limited to:
   1. Gambling: Defined as trading that relies predominantly on luck or chance rather than reasoned analysis or strategic approaches.
   2. Exploitative Practices: Refers to attempts to manipulate or take undue advantage of platform features or market conditions.
   3. Service or Platform Errors: Utilizing strategies that exploit errors in the trading platform or services, such as inaccuracies in price displays or delays in price updates.
   4. Disruptive Trading Practices: Engaging in practices deemed disruptive and prohibited by regulatory bodies such as the CME Group, including spoofing and layering strategies.
   5. High-Frequency Scalping: Using automated systems to execute more than 200 trades per day, considered excessive and unsustainable.
   6. Order Splitting: Placing multiple orders at the same price simultaneously to manipulate market conditions.
   7. Trading in Gapped or Illiquid Markets: Initiating trades in conditions where liquidity is low, intending to profit from unusual price movements.
   8. Exploitation of Simulation Environments: Continuously exploiting the absence of slippage in simulation environments to achieve unrealistic executions of stop-loss orders, especially around major data releases.
   9. Trading Outside Market Prices: Executing trades at prices not aligned with the best available bid or offer.
   10. Use of Slow or External Data Feeds: Trading based on delayed or external data feeds that do not reflect real-time market conditions.
   11. Manipulative Trading: Engaging in trades, alone or in concert with others, including across connected accounts, aiming to manipulate or abuse the trading environment or provide an unfair advantage.
   12. Multiple Accounts and Misrepresentation: Creating multiple trading accounts under different usernames or email addresses or holding multiple accounts within the same household.
   13. Violation of Terms and Conditions: Conducting trades that conflict with the terms of service of NexGen or the rules of the evaluation period.
   14. Misuse of Technological Tools: Using software, artificial intelligence, ultra-high speed, or mass data entry methods that manipulate or abuse the trading platform.
   15. Circumvention of Restrictions: Bypassing geographical or technical restrictions on the availability of trading services.
   16. Noncommercial Activities: Participating in any trading behavior that, in NexGen’s sole discretion, is considered to game the market or represent noncommercial activity or could potentially harm NexGen financially or reputationally.
2. Alignment with Regulatory Standards: We enforce standards aligned with regulatory exchanges. If a trade, trading style, or behavior is prohibited by an exchange, it is unequivocally prohibited by NexGen as well. We are committed to upholding the highest standards of market integrity and regulatory compliance. Breaching an exchange’s rules will result in the termination of the trader’s accounts.
   

2) Discretionary Payout Denial

1. Criteria for Denial: NexGen reserves the right to withhold payouts for behaviors that breach the ethics and conduct expectations of NexGen, including but not limited to:
   1. Reckless Trading Behavior: Trading that shows disregard for risk management or financial prudence.
   2. Exploitation of Simulated Environments: Leveraging knowledge of non-realistic elements of the simulation to gain profits not possible in live trading.
   3. Excessive Contract Flipping: Rapid buying and selling of contracts purely for speculative gain.
   4. Contradictory Positions Across Accounts: Using multiple accounts to hold opposing positions simultaneously, potentially used to manipulate market conditions or internal risk controls.
   5. Gambling or Exploitative Practices: Where actions are deemed Gambling (or exploiting any system (with or without intent) .
2. Enforcement: Continuous monitoring is employed to detect these behaviors, and traders found engaging in these activities will face immediate review and potential denial of payouts.
   

3) Style and Consistency

1. Positioning and Risk Taking: Traders are required to maintain a level of consistency in sizing and risk taking at all times. Excessive sizing or risk taking to windfall gains or losses will be considered gambling.
2. Stability and Behavior: While failing to reach this target does not result in disqualification from funding, consistently exceeding this limit may trigger a review to ensure stable and prudent trading practices.
   

4) Promotion of Risk-Aware Behavior

1. Risk Management Strategies: Traders are urged to develop comprehensive trading plans that include risk mitigation techniques such as stop-loss orders and diversified investment approaches.
2. Supporting a Healthy Trading Environment: These practices contribute to a more stable and sustainable trading ecosystem and help in cultivating a culture of thoughtful and cautious trading.
   

5) Trader and Company Responsibilities

1. Mutual Commitment: NexGen commits to providing traders with access to quality trading tools, educational resources, and support services. Traders, in turn, are expected to utilize these resources responsibly and to trade in a manner that is consistent with professional standards.
   

6) Professionalism and Engagement

1. Professional Conduct: All traders are expected to always conduct themselves professionally when interacting with staff, other traders, and the broader trading community.
   

7) Mentorship, Guidance, and Skill Development

1. Structured Programs: NexGen offers a range of programs designed to enhance trading skills and strategic decision-making.
2. Objectives and Benefits: These programs aim to equip traders with advanced market insights, trading techniques, and risk management skills, which are essential for successful trading.
   

8) Ethical Use of Resources

1. Proper Use Guidelines: Company resources, including trading platforms, information channels, and educational materials, must be used ethically and responsibly.
2. Prohibitions on Misuse: Any misuse of these resources for personal gain or in a manner that could harm NexGen’s reputation or operational effectiveness is strictly forbidden.
   

9) Misconduct and Penalties

1. Types of Misconduct: Includes unethical behavior such as disrespect, bullying, harassment, and any form of discrimination, unfair and inappropriate use of social media to cause NexGen financial or reputational damage.
2. Transparent Penalty System: NexGen employs a systematic approach to address misconduct, which may include warnings, temporary suspensions, or permanent bans based on the severity and frequency of the violations. The severity of an offense is determined solely at the discretion of NexGen.
   

10) Prohibition of Gaming the System

1. Manipulative Practices Prohibited: Specific activities designed to manipulate trading outcomes, such as but not limited to, order flooding or price manipulation through high-frequency trading tactics, are strictly prohibited.
2. Consequences: Engaging in such practices will lead to immediate investigation and potential termination of the trader’s account.
   

11) Restriction on Trading Ahead of Binary Events

1. Binary Event Trading Rules: Trading that seeks to exploit the volatility during major market announcements or events is closely monitored and restricted.
2. Specific Prohibitions: Traders are specifically barred from holding conflicting positions in different accounts to take advantage of such events. Violations will result in severe penalties, including account termination.
   

12) Introduction to a Live Broker

1. Criteria for Introduction: Traders who consistently demonstrate profitability, risk-aware behavior, and adherence to NexGen’s ethical standards may be eligible for introduction to a live broker. During this process, our broker and clearing firm will run a KYC (Know Your Customer) and AML (Anti Money Laundering) check. They will also require a utility bill or bank statement as proof of address, and a government-issued ID. If you cannot provide these documents, or fail these background checks (for example, if you are a convicted felon), we will not be able to proceed with opening the funded account, and you will not be eligible for any refunds. These documents must also be consistent with the initial registration and account opening details. A change in identity is a breach of our conditions and will result in the termination of all accounts.
2. Compliance Requirements: Such introductions are contingent upon traders meeting all broker-specific requirements and terms.
   

13) Use of Referral or Discount Codes

1. Intended Use: Codes must be used in accordance with the specific terms set out at the time of issue, including limitations on the number of uses or the eligible audience.
2. Misuse Consequences: Any abuse of these codes, such as sharing beyond the intended recipients or using expired codes, will result in forfeiture of associated benefits and possible account suspension or ban.
   

14) Integrity and Transparency

1. Commitment to Honest Trading: NexGen values honesty and transparency in all trading activities. Traders are expected to always uphold these principles.
2. Violations and Penalties: Any behavior that deviates from these standards will result in punitive actions, including the potential termination of trading privileges and forfeiture of all accrued benefits.
   

15) Financial Responsibility

1. Speculative Risk Management: Traders should avoid engaging in speculative trading with funds they cannot afford to lose.
2. Expectation of Prudence: Responsible financial behavior is crucial, not only for the trader’s own financial health but also for the stability of the trading platform.
   

Termination Consequences

Termination and Forfeiture of Benefits: Upon the termination of a trading account due to violations of NexGen Futures Trader’s rules and code of conduct, or for any other reason deemed appropriate by the management, the trader will forfeit all rights to any fees, revenues earned, or expected, and all further benefits associated with the account. This includes, but is not limited to, unrealized profits, accrued bonuses, and pending transactions which have not been finalized at the time of account termination. This action is taken to maintain the integrity and fairness of our trading platform and to enforce the compliance of all traders with the established trading guidelines and ethical standards. Termination decisions are final, and the affected trader will have no claim to any financial or material assets previously associated with their trading activity on NexGen Futures Trader. Traders are encouraged to familiarize themselves with all aspects of the trading rules to avoid actions that might lead to such severe consequences.

Conclusion

This document sets forth the comprehensive rules and code of conduct for participation on the NexGen Futures Trader platform. Adherence to these guidelines is mandatory for all traders and is critical to maintaining the integrity, transparency, and professionalism of our trading environment. We believe that strict adherence to these rules will provide a fair and equitable trading environment for all our users.

Eligibility at NexGen Futures

You must be 18 and older to earn a funded account with Nexgen Futures Trader. There will be other checks and verifications required by our broker.