Lark Funding is known for its straightforward and user-friendly approach to proprietary trading, but that doesn’t mean it’s without rules. These guidelines are in place to protect both the trader and the firm, ensuring a fair and stable trading environment. Whether you’re new to Lark Funding or a seasoned trader, keeping these rules in mind will help you trade successfully and avoid any issues that could be harmful for your account. In this article, we’ll go over the key rules you need to keep in mind when trading with Lark Funding. Understanding and adhering to these rules is crucial for maintaining your account and avoiding any penalties.

Stop Loss Rule :-

One of the most important rules at Lark Funding is the Stop Loss requirement. Whenever you open a position, you must add a Stop Loss to it. This is a safeguard to prevent significant losses in volatile markets. If you forget to set a Stop Loss and leave the position open for too long, Lark Funding will automatically close the trade for you. This will be counted as a "soft breach." While a soft breach doesn’t end your trading with Lark Funding, it’s a warning to remind you of the importance of risk management. You can continue trading normally afterward, but it’s best to make it a habit to set a Stop Loss as soon as you open a trade.

Holding Positions Overnight and Over the Weekend :-

Lark Funding offers flexibility when it comes to holding trades overnight. You are allowed to keep your positions open overnight if you believe the market will move in your favor the next day. However, holding trades over the weekend is not permitted by default. This is because markets can gap over the weekend, leading to unpredictable price movements when they reopen. If your trading strategy requires you to hold positions over the weekend, Lark Funding offers an add-on that allows this. You’ll need to purchase this add-on separately when you set up your account or whenever you decide it’s necessary.

Inactivity Rule :-

Staying active is key to maintaining your account with Lark Funding. If you don’t place a trade for 30 days, your account will be considered inactive and will be terminated. To avoid this, make sure to trade at least once within that 30-day window, even if it’s just a small trade. This rule is in place to ensure that traders are engaged and actively managing their accounts. Remember, even a single trade within 30 days is enough to keep your account active.

Prohibited Trading Strategies :-

Lark Funding has clear rules against certain trading strategies that are considered too risky or that can lead to market manipulation. Two strategies that are strictly prohibited are High-Frequency Trading (HFT) and Martingale trading.

High-Frequency Trading (HFT):

High-Frequency Trading involves using advanced algorithms and high-speed networks to execute a large number of trades in a fraction of a second. While HFT can generate profits, it can also lead to market manipulation and instability. Lark Funding prohibits HFT because it can create an unfair trading environment and potentially harm the market. If you’re caught using HFT strategies, you will breach Lark Funding’s Terms of Use, and your trading privileges will be revoked.

Martingale Trading:

The Martingale strategy involves doubling your investment after every loss, with the idea that eventually, a winning trade will recover all previous losses and generate a profit. While this strategy might sound promising in theory, it’s incredibly risky in practice. The main issue with Martingale is that it assumes you have unlimited capital to keep doubling down, which is rarely the case. At Lark Funding, the Martingale strategy is not allowed because it can quickly lead to large drawdowns and the loss of your entire account balance. Instead, you’re expected to trade within the firm’s predefined risk limits and to avoid strategies that rely on risky behaviors.

News Trading Rule :-

Lark Funding allows you to trade around major news events, including high-impact or “red folder” events. There are no restrictions on news trading, which means you can take advantage of market volatility when important news is released. However, keep in mind that while news trading can be profitable, it’s also risky due to the sudden and unpredictable market movements that news events can trigger. Make sure you have a solid strategy in place if you plan to trade during these times.

Restricted Countries :-

Lark Funding has a list of countries where trading on their platform is not allowed due to legal and regulatory restrictions. If you are a resident of any of these countries, you won’t be able to trade with Lark Funding. The restricted countries include Cuba, Iran, Lebanon, Syria, North Korea, Libya, Sudan, and Somalia. It’s important to check if your country is on this list before attempting to open an account with Lark Funding.

Conclusion

Trading with Lark Funding comes with great opportunities, but it also requires adherence to specific rules designed to protect both the trader and the firm. By following these rules, you’ll not only avoid penalties but also increase your chances of long-term success. Always remember to set a Stop Loss, be mindful of your account’s activity, and steer clear of prohibited trading strategies like HFT and Martingale. If you stick to these guidelines and trade responsibly, you can make the most of your experience with Lark Funding.