Why does this rule exist?
The Max Position Loss rule ensures that your risk per market is strictly limited.
Your maximum risk per market:
Challenge: 1% of account balance
Funding & Instant Funding: 0.5% of starting balance
Example (Evaluation)
Account: $50,000 → 1% risk = $500
Example (Funding)
Account: $50,000 → 0.5% risk = $250
What happens in case of a rule violation?
A violation results in a soft breach:
The position is automatically closed
The account remains active
Trading can continue immediately
After the 3rd violation, a hard breach occurs and the account is closed.
Purpose of this rule
Prevents excessive concentration in a single asset
Avoids hidden over-leverage through multiple orders
Encourages clean and professional risk management
Reflects realistic trading conditions in live markets