Some of the Trading Rules and Account Limits

Risk Management is very important part of successful trading. Industry standard trading rules and account limits should be used to ensure trader’s safety and steady profit.

Breach of ‘Trading Rules’ = Soft Breach = Trade Closed Continue Trading

Breach of ‘Account Limits’ = Hard Breach = Account Closed + Reset Required

You will not need to reset your account if you absorb these limits.

Trading Rules

If you follow the trading rules, your trades will not lead to unacceptable risks. If you broke a Trading Rule then your trade will be closed immediately at the current market price. Your trading account will not be closed and you may continue to trade.

Stop Loss

Rule: All trades must have a Valid Stop Loss attached to every trade at entry into the market.

All professional traders attach a Stop Loss to all their trades. Without it, your entire account balance is at risk.

Modern market conditions are cluttered with ‘risk events’ Geopolitical, Major Economic Events, etc. These risk events can turn the market against you in a second. The Stop Loss protects your previous profits, without one your whole account balance can be wiped out in a few seconds.

Weekend Trading

Rule: All trades must be closed before 1900GMT on Friday.

All open or pending trades can be closed automatically by trading server at the specified time on Friday as a back stop if a trader has forgotten to close their trades. This will be done at market price at the time.

In recent years Geopolitical risk events over the weekend have caused big gaps over the weekend, during this time you have no control over your trade.

Account Limits

Account limits may vary from company to company, but they should ensure that both your profits and funded capital is protected. Breach this simple limit and your account is closed. Account reset rules and policy will depend on the Prop Trading Company.

Typically, manager sets up account limits in the Prop Trading Panel and traders can see them in user area.

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