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Understanding Unfair Means (UFM) at PropScholar


What are Unfair Means (UFM)?

Unfair Means (UFM) refer to activities that undermine the integrity of the trading environment and compromise fairness and transparency. At PropScholar, we classify the following practices as UFM:


  • Trading signals based on insider information or algorithmic manipulations
  • Tick scalping, which involves exploiting minor price fluctuations
  • Exploiting system glitches


Why are trading signals considered UFM?

Trading signals, often based on insider information or algorithmic manipulations, give an undue advantage to a select few traders. This disrupts the level playing field and undermines the fairness we strive to maintain for all participants.


What is tick scalping, and why is it prohibited?

Tick scalping involves exploiting minor price fluctuations for quick profits. This practice can distort market dynamics and lead to artificial volatility, negatively affecting the trading environment.


Why is exploiting system glitches classified as UFM?

Exploiting system glitches involves capitalizing on technical faults rather than genuine market movements. This practice breaches ethical trading standards and jeopardizes the trust and reliability of our trading community.


What are the consequences of engaging in UFM?

Engaging in any form of UFM is a violation of PropScholar's terms and conditions. Traders found using UFM will face penalties, which may include:

  • Immediate suspension or termination of their trading account
  • Forfeiture of any profits gained through unfair means
  • Potential legal action, depending on the severity of the breach


How does PropScholar ensure a fair trading environment?

We actively monitor all accounts to detect any UFM activities. If any violation is detected, we take swift action to protect the integrity of the trading environment, ensuring that all traders compete fairly.