FundedNext defines Micro-Scalping as the practice of opening and closing trades within 10 seconds to capture rapid, small price movements. While scalping is a valid trading approach, a high concentration of such trades within a cycle raises concerns around trading consistency and profit distribution integrity. For this reason, FundedNext monitors and enforces a Micro-Scalping threshold across all FundedNext Futures account types.
Traders are free to close losing trades at any time without triggering the Micro-Scalping rule. The threshold applies to profitable trades only.
How the Threshold Is Calculated
The Micro-Scalping percentage represents the proportion of total recorded profit derived from trades closed within 10 seconds. It is evaluated on a per-cycle basis. Losing trades are excluded from this count in the interest of the trader, meaning only profitable trades contribute toward the Micro-Scalping threshold.
A Micro-Scalping percentage at or above 40% constitutes a violation.
How Violations Are Handled
Violations are tracked per account and evaluated per cycle. A warning or deduction on one account does not carry over to any other existing or future account. Each account is evaluated independently.
Warning Stage — 30% Threshold
When Micro-Scalping profit reaches 30% of total recorded profit on either a Challenge or a FundedNext Futures Account, a compliance warning is issued. No deduction or suspension is applied at this stage. The warning helps traders identify when profit distribution is approaching the permitted limit and when trading activity needs to be rebalanced before the 40% threshold is reached.
Challenge Account — 40% Threshold Breached
Once Micro-Scalping profit reaches or exceeds 40%, the ability to reach the profit target and advance to the next stage is placed on hold. The account remains active, and trading can continue, but advancement will not be processed until the Micro-Scalping percentage falls back below 40%. Eligibility is restored automatically once the threshold is cleared — no manual action is required.
FundedNext Futures Account — 40% Threshold Breached
Once Micro-Scalping profit reaches or exceeds 40%, the Micro-Scalping portion of profit for that cycle is deducted in full. The account remains active — Micro-Scalping does not result in account termination at any level on a FundedNext Futures Account. Any future profit attributed to Micro-Scalping activity will be subject to the same deduction on an ongoing basis.
When the Deduction Exceeds Total Account Profit
If the total Micro-Scalping profit deduction equals or exceeds the account's net profit for the cycle, no Performance Reward is issued for that cycle, and the withdrawal option is disabled. The account remains active. A full breakdown of applied deductions is available in the account dashboard.
Maintaining a healthy profit distribution across standard trade durations reflects consistent, process-driven trading. Keeping Micro-Scalping activity well below the 40% threshold ensures uninterrupted progression and full Performance Reward eligibility across cycles.