On 1-Step Funded, 2-Step Funded and Instant accounts, the floating loss on any single open position must never exceed 1% of the Initial Account Balance.
Formula
Maximum Floating Loss per Position = 1% x Initial Account Balance
| Account size | Maximum floating loss per position |
|---|---|
| $10,000 | $100 |
| $25,000 | $250 |
| $50,000 | $500 |
| $100,000 | $1,000 |
| $200,000 | $2,000 |
Examples
- Safe: $100,000 Funded account. You are long 2 lots EUR/USD and the trade shows a floating loss of $800. Within the $1,000 limit.
- Breach: $50,000 Instant account. Your gold position shows a floating loss of $520. This exceeds the $500 limit, even if the trade later recovers.
- Using a stop-loss: on a $100,000 account, setting your Stop-Loss so the maximum loss on the trade is $1,000 or less keeps you inside the rule.
Flex funded accounts
Flex funded accounts follow their own 1% floating loss cap instead of this rule. Positions are closed automatically if the floating loss reaches 1% of the account. The first time, the account continues with the profit split reduced to 50%. A second time can close the account.
Key points
- Applies to 1-Step Funded, 2-Step Funded and Instant accounts. It does not apply during the 1-Step / 2-Step challenge or the Flex evaluation.
- Measured per position, on floating (unrealized) loss, at every moment the trade is open.
- After a scale-up, the 1% is calculated on the new account balance.
- This rule works on top of the Maximum Daily Drawdown and the Maximum Loss.
- Exceeding the limit is a hard breach: account termination.