direct-account-prohibited-trading-practices

Hola Prime strictly prohibits abusive or exploitative trading strategies such as, but not limited to, gambling or speculative behavior, quick strike methods, high frequency trading, copy trading across accounts, group hedging, arbitrage, tick scalping, account rolling, one-sided betting, hyperactivity, exploiting server errors, guaranteeing profits during low liquidity periods, or account and device sharing. Such practices distort markets, bypass fair rules, or reflect unsustainable trading behavior, and violations may result in account termination, denial of rewards, or permanent bans.

Consequences of using Prohibited Trading Practices

Hola Prime enforces calculated measures to prevent and address prohibited trading practices. Depending on the severity, consequences may include issuing warning, restricting the number of trades or lot sizes, lowering daily or maximum loss limits, nullifying the effects of trades that violate rules, or imposing a complete and permanent account ban.

Prohibited Trading Practices

Hola Prime strictly prohibits any kind of exploitation of the platform. Traders should read all Terms and conditions carefully before using our platform. The conditions below apply to all accounts, whether in the challenge or Hola Prime phases.

Hyperactivity/Excessive Trading

Hyperactivity in trading refers to an unusually high volume of activity where a trader places and executes trades rapidly and in quick succession. It also extends to constant adjustments of existing orders, including repeated changes to stop-loss, take-profit, or limit order instructions.

Account or Device Sharing

If a trader shares their Hola Prime Account or the device on which they are using Hola Prime, resulting in sharing the Hola Prime Account or selling it, it will be considered a direct breach of our Terms of Service. To ensure fairness towards all clients, there is a Zero tolerance policy towards such behavior.

Gambling/Speculative Trading

At Hola Prime, we emphasize disciplined and responsible trading practices. Behaviors resembling gambling—such as excessive use of margin, overleveraging, placing multiple buy and sell orders at different price levels to exploit short-term price movements, or entering high-risk trades without proper analysis—are strictly forbidden. Such actions compromise sound risk management, heighten financial exposure, and hinder sustainable long-term trading performance.

Speculative Trading: Setting up several buy and sell orders at various price points both above and below the current market price, to take advantage of price changes is prohibited. When the market rises and falls, hitting different price points, it raises risk because numerous losses can occur at once from a significant market movement in one direction. Hence, it is prohibited to use this tactic.

For instance if a trader sets several buy orders at $150, $155, and $160 and multiple sell orders at $170, $175, and $180. The trader makes profit if the market moves between these levels. However, all of the buy orders will lose equity if the market falls sharply below $150, resulting in huge losses.

Excessive use of margin and high risk on trades: In genuine market conditions, professional traders do not risk exposure above 0.75-1% per trade and keep margin usage within the 30% range, allowing for steady, sustainable performance over time.

The guidelines established by the Company to manage exposure to losses, including position sizing, stop-loss orders, maximum daily loss limit, and other related practices.

Your loss on a single trade idea should not exceed 2% of the account size (initial balance) on the Hola Prime (Funded or Direct) account only. Splitting up a trade into multiple positions will be counted as one single trade for this rule. Further, if a new position is opened within 10 minutes of closing a position, in the same direction, it will also be considered as a single trade idea for this rule.

The breach of this rule will lead to hard breach and termination of account.

Further, general risk management rules should always be kept in mind, and the trader should trade in the account as if it were their money. Read about prohibited Gambling behavior here.

Strategies which are not reasonably replicable in real markets: It is prohibited to engage in any practices which are not reasonably replicable on actual market (such strategy is not in line with risk management rules that a reasonable trader would apply when trading with their own money):

(i) opening substantially larger position sizes compared to your other trades, whether on this or any other account of the trader;

(ii) opening substantially smaller or larger number of positions compared to your other trades, whether on this or any other account of the trader.

Performing gap trading (high risk practice which carries potential unfavourable outcomes if performed in real market conditions in times of increased volatility) by opening trade(s);

(i) when major global news, macroeconomic event or corporate reports or earnings, that might affect the relevant financial markets are scheduled; or

(ii) hours or less before a relevant financial market is closed for 2 hours or longer.

Trading without considering technicals or fundamentals: Continuous buying or selling of any instrument without taking into account technical signs, economic indicators, or fundamental news that could point to a future price gain or drop is a kind of betting with unfavorable risk-reward ratios. Because of its speculative nature and substantial loss risk, entering into these sorts of trades is prohibited.

For Instance- If a trader consistently buys a specific instrument without taking into account any potential risk or signs of an impending market decline. They run the risk of suffering substantial losses if the instrument's price drops unexpectedly due to their lack of diversification.

In general, trades placed in contradiction with how trading is actually performed in the financial markets, or in a way that our Risk Team considers, acting reasonably, might cause us financial, reputational or other harm as a result of the trader's activities (Some e.g. include overleveraging, overexposure, one-sided bets, account rolling, trading during non-liquid market hours to exploit liquidity shortages, inconsistencies, etc.).

One-sided Betting

One-sided betting refers to a trading approach where one repeatedly takes positions in only one direction, either buy or sell, without proper market evaluation or analysis. At Hola Prime, this practice is prohibited because it is highly speculative and exposes traders to unnecessary risk.

Example: A trader may open multiple small trades or a single large trade across one or several assets, all positioned on the same side. This lack of balance or diversification leaves them highly exposed, and a sudden adverse price move can trigger significant losses.

Arbitrage trading

It is prohibited to take advantage of discrepancies in price feed within a platform, due to technical glitch, or price differences or delays across several marketplaces or platforms, in order to make gains without taking any risks or fair market analysis as it is an unethical practice and works against fair market conditions.

Using Expert Advisors and algorithms

It is not allowed to employ any kind of expert advisors (EAs) on Hola Prime Accounts issued under Direct model.

Copy Trading

It is allowed for traders to engage in copy trading only from one Hola Prime account to another Hola Prime account (both challenge and funded), provided that both accounts are owned by the same individual.

However, copy trading from external accounts, as well as between multiple Hola Prime accounts not owned by the same person (such as those of relatives, family members, friends, service providers, etc.) is strictly prohibited.

In addition, the following activities are also prohibited:

It will be deemed copy trading and a breach of our conditions if a sizable portion of a trader's trades are identical to those of one or more traders based on the following — opening price, closing price, lot size, lot ratio, symbols, etc. This could also indicate group trading, signal services, passing services, or any other activity that replicates trading strategies, which are not allowed. In such a scenario, all associated accounts will be immediately terminated.

Hedging or executing reverse trades

It is allowed to hedge or open buy or sell trade in the same instrument inside the same trading account. However, it is prohibited to open buy and sell trades in the same instrument across many accounts or in a group.

For Instance: It is prohibited to hedge a trade over two accounts by buying one lot of EUR/USD on Account-1 and selling one lot of EUR/USD on Account-2 at the same time by the same trader.

Tick Scalping or High-Frequency Trading (HFT)

It is not allowed to use sophisticated expert advisers, algorithms, and fast communication networks to profit from small price fluctuations by executing a high volume of trades within a short time frame because of its potential for market manipulation and disruptive trading activities.

By making trades extremely quickly, these algorithms are able to profit from even the slightest price swings, giving them an unfair edge over other traders. These algorithms strain market liquidity by the quick influx of orders and subsequent cancellations. Owing to this several traders might not get their trades executed at fair pricing.

News Trading

News trading is not allowed in Hola Prime Account issued under the Direct Model. Traders can hold trades at any time but are not allowed to execute (open or close) any trade on the instruments affected by high-impact news, during the window of 5 minutes before to 5 minutes after the release of such news. Please note that the execution of trades includes market execution as well as pending orders, including Stop Loss and Take Profit orders.

You are allowed to hold trades on the affected instruments opened 5 minutes prior to the news release. If your Stop Loss or Take Profit is activated during this window of 5 minutes before and 5 minutes after, it will be taken as a violation of the Hola Prime Agreement and Breach of this rule will lead to account closure.

Other non-targeted instruments (affected by low and medium-impact news) can be traded normally during news hours.

For Instance: You can trade AUDNZD during the US – CPI release. However, you are not allowed to open or close USDJPY or GBPUSD during the window of 5 minutes before to 5 minutes after the CPI release.

For example: There is a High Impact news speech scheduled at 03:00.

Condition I: You are not allowed to open or close any trade (including limit, stop, TP & SL of any trade) between 02:55 & 03:05.

Condition II: If you are opening the trade before 02:55 and closing (including limit, stop, TP & SL of any trade) at any time between 02:55 & 03:05 it will still be considered a violation of our Terms of Service.

Condition III: If you are opening the trade before 02:55 and closing the same trade after 03:05, the trade will be considered valid and the profit will be counted.

For news announcements affecting USD, the restriction applies for Forex pairs with USD currency involved including the Indices offered, namely US30, NAS100, and SPX500.

Note: Trades can be held during any news event- High, Low, or Medium. The news release schedule and their impact levels can also be monitored in our Economic Calendar within the Client Portal. Trades with 3 blue bars are high Impact, 2 bars are medium Impact, and 1 bar is low Impact.

Weekend Holding

Holding trades over the weekends is not allowed and is considered a hard breach in the Hola Prime Account issued under this Direct model. Ensure all trades are closed before 15:45 EST on Friday, or they will be automatically closed by the system, and the account will be terminated.

If our Risk Management Team detects that a trader's trading constitutes Prohibited Trading practices, their participation in the program will be terminated and will result in forfeiture of any accrued trader payout, and fees paid to the Company.

Before any Trader shall receive a Hola Prime Account, the trading activity of the Trader under these Terms and Conditions shall be reviewed by the Prop Firm's Risk Management Team to determine whether such trading activity constitutes Prohibited Trading. In the case of Prohibited Trading, the Trader shall not receive a Hola Prime Account.