TradeFundrr’s default Options rules are designed to give each trader the opportunity to trade their way, and at the same time, will give them a rule set that every trader will be faced with when joining our professional prop trading company.
No Minimum Instrument Price Required
We believe there shall not be any boundaries that are based on the Stock or Instrument price. Therefore, traders can trade any instrument that is listed on the traded exchanges, regardless of the price.
Allow Trading Major Economic Calendar Releases
Traders can trade through any major economic news release as well as through stock specific news like earnings reports without the need to close the trade before.
Only Short Instruments on Easy to Borrow List
Traders can only short stocks that are on the easy to borrow list. We are using the same list we are using in our prop-firm, so you will have the same short opportunities our pros have. The list is automatically loaded in the risk manager so there is nothing for you to do.
Why do we use an easy to borrow list? It is simple, if you like to short a stock, you need to borrow it first. And if there is nobody you could borrow the stock from, you can not short the stock. That ensures that the simulated trading environment in your TradeFundrr account is the same as in our professional prop group.
Don’t Allocate More Than 50% of Total Account Buying Power To One Instrument
For risk management purposes, a trader shall never allocate more than 50% of his available buying power to one stock or instrument. Trade smart and allocate your buying power across multiple different stocks and instruments.
No Position can Exceed 3% of Average Daily Volume of Instrument Traded
Average Daily Volume is exactly what it says. It shows us how much volume is traded on one stock or instrument to determine if there is a possibility to initiate a trade and get a fill.
Example: If one stock has an Average Daily volume of 5,000 and a trader likes to trade 1,000 shares, we know that is not possible in the live market environment. Therefore, the trader is only allowed to trade up to 3% of the Average Daily Volume to ensure the trade can be executed in the live market.
Maximum Price Variation (Spead) at Bid/Ask of 15%
To protect traders from from fills that are far away from the current price, we don’t allow any trades that have a 15% or bigger price variation.