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Is there any maximum risk rule?
Is there any maximum risk rule?
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Written by Alpha Trader Firm
Updated over a month ago

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.

Instant Funding Accounts

For Instant Funding Accounts, the Maximum Risk Rule is as follows:

1. Risk Per Trade: Traders are limited to risking a maximum of 1% of their total account balance per open trade.

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?

• Instant Funding offers 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.

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