IP Address Filtering

IP address filtering is the practice of blocking or allowing network traffic based on the source IP address of the user. This is the most basic form of access restriction and is widely used by platforms to enforce geo-blocking and prevent access from malicious or known bad actors.

By maintaining a blacklist of restricted IP ranges or a whitelist of approved regions, a platform can effectively manage its user base at the network layer. In derivatives trading, this serves as the first line of defense against unauthorized access and potential cyberattacks.

While it is not foolproof, as it can be bypassed with VPNs, it provides a high-level filter that satisfies basic regulatory requirements. Modern systems often integrate IP filtering with threat intelligence feeds to automatically block traffic from known botnets or suspicious network nodes.

This ensures that the platform remains accessible to legitimate users while minimizing exposure to external threats.