Prop firm risk per trade rules
Some firms cap what a single trade, or a group of trades on one idea, may lose. Break the cap and the account can close even though the daily and overall loss limits were never touched. Every rule below is quoted from the firm’s own pages, with a link to where we read it.
What can this rule do to you?
Kind of rule
Risk per trade
Caps on what one trade, or one trade idea, may lose.
Positions on the same pair are assessed together
Multiple positions open at once on the same instrument in the same direction are treated as one trade idea, and their floating AND realised losses are combined. Their own example: three EURUSD buys losing $300, $200 and $250 on a $25K account with a 3% limit reach the $750 cap and breach, even though one position is still open and none individually came close.
A winning trade does not offset a losing one
Within a single trade idea, profit on one position does not reduce the loss assessed on another. Each trade idea is measured on its losses only. Hedging inside the same idea therefore does not protect you from the limit.
The risk limit depends on your model and account size
Risk Per Trade Idea does not apply to every plan. On 2 Step Flex it is 3% at $25K and 2% above $25K, and does not apply below $25K. On Zero it is 3% below $50K and 2% at $50K and above. It does not apply at all to 1 Step Flex, 2 Step Standard or 2 Step Pro. The rule you read may not be the rule on the plan you bought.
Risk per trade idea, and a strike system behind it
Funded accounts cap the loss on one trade idea, realised and floating together: 3% under $50K, 2% at $50K and above, with variations by model. Exceeding it is a hard breach. Separately, a striking rule records a warning each time floating loss reaches 1.2% on 2-Step Standard above $25K, or 1% on 1-Step Flex. Second warning halves your split, third drops it to 20%, fourth breaches the account, and profit from any warned trade is deducted.
Floating loss on one asset over 2% or 3% closes the account
On Qualified accounts bought after 21 July 2026 open losses on a single instrument may not exceed 3% ($5k to $25k) or 2% ($50k to $200k) or 1% on Alpha Direct. Reopening the same direction within 10 minutes adds the losses together and the first asset to hit the limit closes the account.
Open loss past 2% of starting balance closes the account
On Instant Funding and AquaMan accounts the account is permanently closed if combined floating loss drops below 2% of starting balance. On $300k and $400k accounts the limit is 1%.
Risk per trade idea capped at 2% of starting balance
On funded and Direct accounts the total risk on one trade idea must stay within 2% of the initial balance. Going over it is a hard breach and the account is terminated.
An open loss of 1% to 2% is a breach, even if the trade recovers
On funded and instant accounts, a floating loss of 1% of the initial balance (Instant), 1.5% (Instant Live) or 2% (other funded accounts) counts as a breach the moment it is touched, even if the trades come back. The first breach cuts your profit split to 40% for good; the second closes the account.
3% risk per trade, funded accounts only
Funded accounts must keep maximum potential loss on any trade, measured from stop placement, plus all realised and floating losses across open trades, against the initial balance, at or under 3%. First breach: 100% of the profit from the offending trades is deducted. Second breach: the same deduction, and the account is permanently reclassified to a 1% cumulative risk limit. It is called a guideline; it is enforced like a rule.
Risk is judged per trade idea, and judged by a person
FTMO recommends keeping risk to about 1% per trade idea, with roughly 1–1.5% of the initial balance as the maximum it advises. This is guidance rather than an automatic cut-off. There is no threshold that closes the account by itself. What matters is that FTMO monitors activity and can intervene where it judges the behaviour excessive or gambling-like, and that it assesses a trade IDEA rather than individual tickets. Splitting one oversized bet across several positions does not make it several small ones.
Trades closed inside two minutes can be flagged
The tick scalping rule sets a minimum holding time of two minutes. "If a trade is closed in under 2 minutes, it may be flagged for tick scalping, which is against our trading rules." Scalpers and anyone taking quick partial exits are in scope, and "may be flagged" leaves the judgement with them.
This list is only as complete as our reading. 33 of the 83 firms we track have been through a rulebook pass; the rest are still to do, and a firm missing from here has not been cleared. It has not been checked. See which firms are next.