THIS RULE ONLY APPLIES TO THE FUNDED STAGE
Risking more than 50% of your daily loss limit on a single instrument during the same day is strictly prohibited. For example, if your account has a 5% daily drawdown, you cannot risk more than 2.5% on the same pair (instrument) within the same day. This rule ensures that traders manage their exposure responsibly and avoid concentrating excessive risk on a single instrument within the same day.
Please note that RISK and LOSS are not the same thing and even profitable trades determine a certain amount of risk taken.
The risk is cumulative on all trades on the same instrument during a single day and it's calculated on trade's closure day.
How is Trade Risk Calculated?
If Stop Loss is not placed:
If no Stop Loss is set, the risk is calculated based on the maximum adverse price movement that occurred while the trade was open.
For BUY positions, the lowest price reached by the instrument during the trade is used.
For SELL positions, the highest price reached by the instrument during the trade is used.
For instance, if you open a BUY at 1.1000 and the price drops to 1.0950 before moving up again, the system considers your risk as 50 pips, even if you eventually closed the trade in profit.
If Stop Loss is placed:
If a Stop Loss (SL) is set, the risk is calculated based on the most distant Stop Loss level from the entry price that was ever set during the trade’s lifetime.
For example, if you open a trade with a 1% SL but later widen it to 2%, your effective risk is 2%.
Please note: if both istances apply, the system will register the highest risk between the two.
Consequence of the rule violation:
Breaches of the rule outlined in this agreement may result in funded account closure and forfeiture of any accumulated profit.
All violations are automatically flagged by our system based on predefined risk parameters. Traders can autonomously reset their live account directly from the dashboard clicking on the "reset account" button under the “Trading Objectives” section for a maximum of 3 times.
The first reset will incur a fee equal to 20% of the original challenge cost (no discounts applied, increased by the cost of add-ons selected), with a minimum charge of $10 USD.
The second reset will incur a fee of 2 times the first reset fee.
The third and last reset will incur a fee of 2 times the second reset fee.