Maximum Risk Rule
At our firm, we prioritize responsible trading practices to support long-term success. Here’s how the Maximum Risk Rule is structured:
Two-Phase Challenges and One-Step Challenges
• These account types have no maximum risk rule, allowing traders to manage their risk according to their preferred strategy without restriction.
All Other Accounts w/ Maximum Risk Rule:
For Instant Funding Accounts:
, the Maximum Risk Rule is as follows:
1. Risk: Traders are limited to risking a maximum of 1% of their total account balance.
• Trades on the same symbol will be paired and counted as a single trade when calculating the 1% maximum risk.
2. Floating Profit and Loss (PnL):
• Your floating PnL must not exceed a negative 1% of your total account size at any point.
• If your floating PnL falls below this threshold, it indicates your losses have surpassed the allowable limit. As a result, the account will be immediately closed due to a rule breach.
Why This Rule for Instant Funding Accounts ?
• This Challenge offer immediate access to trading, bypassing challenge phases. With this privilege comes the necessity for stricter safeguards.
• The Maximum Risk Rule, including the limit on floating PnL, protects both traders and the account balance, encouraging disciplined trading and maintaining account longevity.
Note: This rule applies only to Instant Funding Accounts.
Other account types do not have a maximum risk requirement, offering more flexibility in trading strategies.