🔪"Scalping" Limits

Why implement limits targeting scalpers?

DXS offers features that stand out in the trading world, such as zero slippage, no fees, and the fastest risk management ever created. These features, amongst others, have made it possible to adopt a nearly risk-free trading approach focusing on small market movements, a technique known as "scalping." Applying this technique on DXS can result in success rates of over 90%, a feat not achievable elsewhere. This underscores the exceptional opportunities and tools DXS offers.

However, to ensure that these advantages benefit a wide range of users and to encourage a variety of trading styles, we've implemented specific restrictions on scalping. This move aims to preserve the platform's value for everyone while fostering a diverse trading environment.

How do scalping limits work?

Each trader on DXS is assigned a variable scalping frequency limit, ranging from 5 to 80 profitable scalping trades allowed over the last 7 days (a 7-day trailing period). This means if a trader exceeds their allocated number of scalping trades within this timeframe, restrictions will apply.

What trades qualify as scalping?

A trade is considered scalping if it capitalizes on a market movement of less than 0.1% to 4.0%, with the exact percentage depending on the specific market and its volatility. The exact threshold will be prominently displayed in the respective market data information box.

What happens if a trader exceeds the scalping limit?

If you surpass your designated scalping limit by closing too many scalping trades, the profits from any additional trades beyond this limit will not be recognized (i.e., they will be voided). Typically, you will receive a direct notification and have the option to delay the closing of the trade, which helps preserve your profits. However, in some cases, you may not receive a notification, such as when engaging in high-frequency trading or when the trade is executed in the background (e.g., triggered by a stop loss or target price).

How can a trader avoid "scalping" limits?

You can opt to switch to liquidity fee mode. This mode involves paying a fee on the volume of all trades, according to the applicable liquidity fee tiers, with a minimum fee starting at 0.05% for the 1st tier.

Liquidity fee mode replaces the scalping limits mode. However, you can switch back to scalping limits mode at any time and continue enjoying a 0% execution fee.

What happens if a trader focuses on scalping?

Traders identified by DXS as exclusively focusing on scalping trades may be automatically switched to liquidity fees mode. This mode requires paying a fee on the volume of all trades, based on the applicable liquidity fee tiers, with a minimum fee starting at 0.05% for the 1st tier.