Zolio Trading Rules

Eligible Participants
Open to all legal residents of the United States.

A proprietary personal profile questionnaire must be completed by all candidates in order to receive any feedback reports post trading.

Limited to Common Stocks and ETFs*
Minimum market capitalization of $100 million**
Both long and short positions allowed
Cash may be held

Note: Availability of securities is limited to the capabilities of the data provider. One should ensure a security is available to trade by typing in the ticker symbol before research is conducted. Requests may be made to the helpdesk to have a security added, but not all securities may be available. Availability is subject to our data provider and trading rules.

Pricing Information
Level 1 pricing information only

BATS Exchange which trades securities listed on NYSE and NASDAQ.

Types of Orders
Market Orders
Limit Orders
Stop Orders

Account Size
$1,000,000 (Fictitious)

Strategy Style
No limitations

Minimum Number of Equity/ETF Positions
Participants must purchase at least 10 discrete equity/ETF positions during the Session.

Trading System
Participants are required to manually enter trades into the online trading system.
Participants may not modify the trading system, may not integrate software with the trading system, and must use the system “as is”.

Minimum Size for Any Single Trade
USD $5,000 (Fictitious)
Rule is enforced by system automatically.

Maximum Number of Daily Trades
Rule is enforced by system automatically.

Transaction Fees
Equities: USD $0.045 per share (Fictitious)

Financing (Cost to short)
300 basis points per annum of the total order (Fictitious)

Limits on Long/Short Exposure
The Short Book or the Long Book cannot exceed 5x capital, thus any trade that creates that situation will be rejected. If your account has $1 million, for instance, you cannot be short more than $5 million in equities in total.
Rule is enforced by system automatically.

Buying Power
Buying power is equal to Initial Capital + Total Cash Inflows/Outflows – Commissions – Borrow Cost + Realized P&L + Unrealized P&L from Shorts. This affects only Buy trades, and you are not able to Buy beyond 5x capital.
Rule is enforced by system automatically.

Limits on Concentration of Capital
The market value of any position (in a single instrument, either long or short) cannot breech 20% of your current capital.  Orders that would cause a position to breach this limit will be rejected.  If a position crosses this limit due to P&L changes on the position or the portfolio as a whole, only orders that cause the market value of the position to be reduced will be accepted.  Rule is enforced by system automatically.

Attendees Drawdown Limit
A 65% loss of the initial Account Size i.e. down to an account balance of $350,000 will result in a suggested 1-day cool-down period (no active trading). It is recommended (but not required) that the Participant creates and submits a drawdown plan including a revised risk approach to avoid a continual drawdown. After the cool down period, the Participant will be entitled to resume trading the remaining funds in the Account.

Trade Journal
A trade journal may be completed on any day that a Participant trades, but no less than once per week during the Session. Participants will be given prompts to remind them to do so before they are able to resume trading. The journal is located on the Platform and includes dropdown and “free form” questions including the following (i) reason for trading or holding Securities (ii) methodologies employed and (iii) the Participant’s approach to risk.

Violating the Rules will be noted on (i) a feedback report; and (ii) the Track Record report and other data furnished by the Company to third parties.

*Securities will be filtered for reasonable volume, market capitalization and/or other factors affecting their tradeability on the Zolio platform.

**If a security is above $100 million market capitalization when purchased, but falls below this threshold during trading, a system generated liquidation of the position will be initiated.