Instrument Restrictions in Prop Firms
Prop firms don’t let beginners trade every futures product. Some instruments are too volatile, too thin, too complex, or too dangerous for new traders. Firms restrict these markets to avoid payouts getting blown up by rookies using oversized leverage on contracts they can’t control.
Why Prop Firms Restrict Certain Instruments
Instrument bans are about one thing: risk. Prop firms restrict markets that can nuke funded accounts in seconds due to:
- massive volatility
- thin liquidity
- huge tick values
- fast stop-outs
- gap risk
- server strain
If a product can wipe a trader with one candle, the firm doesn’t want beginners anywhere near it.
Common Restricted Instruments
Most prop firms restrict or ban these for new traders:
1. **Natural Gas (NG)**
One of the most violent futures markets on earth. Pipelines and geopolitical headlines can move NG 50–150 ticks instantly.
2. **Crude Oil (CL)**
CL whipsaws hard during news, inventory reports, and thin sessions. Many firms either restrict it or require specific experience.
3. **Micro Crude (MCL)**
Even the micro version can destroy a beginner. Firms often limit size or require a risk waiver.
4. **Ultra-Bond Futures (UB, ZB)**
These are high-duration, high-volatility products that can make 10–20 tick jumps instantly.
5. **METALS (GC, SI, HG)**
Gold and silver spike violently around news, rollover, and overnight sessions. Most firms restrict size or outright ban new traders from using metals to pass evals.
6. **Forex Futures (6E, 6B, 6J, DX)**
Some firms restrict FX futures because of correlation issues or thin overnight books.
7. **RTY (Russell 2000)**
RTY combines speed and thinness. Firms often restrict size here because stops slip too easily.
8. **Micro Bitcoin Futures (MBT, BRR)**
Crypto-linked futures are extremely volatile and prone to gap risk. Many prop firms simply ban them for beginners.
Why Firms Restrict Beginners Specifically
Experienced traders can manage violent products. Beginners can’t. Firms see the same patterns:
- new traders chase breakouts
- they misjudge volatility
- they use stops that are too tight
- they don’t understand session behavior
- they oversize because “micro contracts feel small”
Combine those habits with CL or NG and accounts explode instantly.
Restricted Doesn’t Mean Banned
Most restricted markets fall under three categories:
| Category | Description |
|---|---|
| Fully Banned | Beginners can’t trade it at all |
| Size-Limited | You can trade it, but only micros or 1 contract |
| Phase Restricted | Allowed in funded, banned in evaluation |
How Firms Enforce Instrument Restrictions
The risk system checks:
- symbol traded
- contract month
- time of day
- maximum allowed size
- account phase (eval/funded/payout)
A single trade in a banned instrument = hard violation. Exactly like blowing trailing drawdown or violating news trading restrictions.
How to Stay Out of Trouble
- check your firm’s symbol list before trading
- avoid volatile products until you’re truly consistent
- don’t scale size in thin or violent markets
- practice restricted products in SIM for at least a month first
If you can’t survive RTY or NG in SIM, you won’t survive them with a trailing drawdown behind you.
Final Takeaway
Prop firms restrict instruments because too many beginners blow up dangerous markets. If a product is known for violent movement, thin depth, or unpredictable spikes, the firm doesn’t want you touching it in an evaluation. Learn stable products first — the wild stuff isn’t going anywhere.