Tick Scalping Thresholds
Learn what tick scalping is, why it is restricted, and the thresholds that may result in a violation on TX3 Funding Futures accounts.
Tick scalping refers to opening and closing trades very quickly, aiming to capture minimal price movements (ticks) repeatedly. While this can generate activity, it creates patterns that are not aligned with TX3 Funding Futures’ evaluation and risk management policies.
To maintain fair use of the program and protect liquidity, strict parameters are enforced to prevent excessive tick scalping.
Tick Scalping Violation Thresholds
Trades will be flagged as potential tick scalping when:
Positions are repeatedly opened and closed within 1–2 ticks of movement.
The majority of trades fall below the instrument’s minimum point target (see tables below).
Patterns of rapid-fire trading show intent to exploit small tick changes rather than pursue a strategy based on meaningful price movement.
Important: Thresholds vary by instrument group because tick values differ between CME, COMEX, CBOT, and NYMEX contracts.
Minimum Point Targets by Instrument Group
CME Instruments (examples)
Instrument | Contract Code | Tick Size | $ per Tick | Minimum Point Target* |
E-mini NASDAQ 100 | NQ | 0.25 | $5.00 | 10 points |
E-mini Russell 2000 | RTY | 0.10 | $5.00 | 4 points |
Australian Dollar | 6A | 0.00010 | $10.00 | 0.2 points |
British Pound | 6B | 0.00010 | $6.25 | 0.32 points |
COMEX Instruments (examples)
Instrument | Contract Code | Tick Size | $ per Tick | Minimum Point Target* |
Gold | GC | 0.10 | $10.00 | 2 points |
Silver | SI | 0.005 | $25.00 | 0.8 points |
Copper | HG | 0.0005 | $12.50 | 4 points |
CBOT Instruments (examples)
Instrument | Contract Code | Tick Size | $ per Tick | Minimum Point Target* |
Corn | ZC | 0.25 | $12.50 | 4 points |
Soybean | ZS | 0.25 | $12.50 | 4 points |
E-mini Dow Jones | YM | 1.00 | $5.00 | 40 points |
NYMEX Instruments (examples)
Instrument | Contract Code | Tick Size | $ per Tick | Minimum Point Target* |
Crude Oil | CL | 0.01 | $10.00 | 20 points |
Natural Gas | NG | 0.001 | $10.00 | 20 points |
Micro Crude Oil | MCL | 0.01 | $1.00 | 200 points |
*These minimum point targets are equivalent to roughly $200 in value per trade, used as a benchmark for determining whether trades qualify as scalping.
How Violations Are Determined
A violation may occur if:
A trader consistently closes trades before reaching the minimum point threshold.
A significant portion of account history reflects trading activity designed to capture only 1–2 ticks.
Tick scalping is combined with HFT-style trade counts, amplifying activity without pursuing legitimate strategies.
Avoiding Violations
Ensure that trades are opened with the intention of reaching beyond the defined minimum point targets.
Use stop-loss and take-profit levels that align with these thresholds.
Avoid repeatedly closing trades at 1–2 ticks unless part of a broader, legitimate risk management strategy.
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