What is Gambling in trading and why is it prohibited?

At Pivex Funded, we are committed to fostering a disciplined and professional trading environment. Engaging in gambling-like behaviors, such as using excessive margin, overleveraging, making high-risk trades without adequate analysis, or employing "All-In" strategies, is strictly prohibited. These practices compromise effective risk management, elevate financial risks, and hinder long-term success in trading.

What Constitutes Gambling Behavior?

1.  Excessive Margin Usage (70% or More):
Utilizing a significant portion of your available margin—typically 70% or more—places your account at high risk. Such practices expose you to rapid account depletion and increase the likelihood of margin calls or forced liquidations.

2. Overleveraging:
Using high leverage without a clear strategy or proper risk management is considered overleveraging. This behavior can amplify both potential profits and losses, making it difficult to sustain consistent performance. Pivex Funded caps leverage at 1:30, depending on the asset class.

3. "All-In" Trading Strategies:

Taking risks that approach or exceed the daily loss limit on one or more trades simultaneously is a gambling behavior. This type of strategy reflects poor risk management and is unsustainable for long-term success.

Consequences of Gambling Behavior

Engaging in gambling behaviors may result in:

• Formal Warnings:
  A notice will be issued to emphasize the importance of responsible risk management.
  
  

• Leverage Reduction:
  Trading leverage may be reduced to promote better risk control.
  
  

• Account Termination:
  Repeated violations can lead to account suspension or termination.

These behaviors undermine effective risk management, increasing the risk of significant losses and drawdowns. High-risk trades without proper analysis expose your capital to substantial financial risks. While they may offer short-term gains, gambling behaviors are unsustainable and hinder long-term success in trading.

To ensure consistent performance, we advise to keep margin usage below 30% and use leverage responsibly, aligning it with your strategy and risk tolerance. Always base your trades on thorough market analysis and a clear plan. Implement risk management strategies like stop-loss orders to limit losses and protect your capital.

By adhering to these guidelines and maintaining a disciplined approach, you can build a sustainable and successful trading career. Remember, trading is a skill, not a gamble. It requires patience, analysis, and responsible risk management.