What happens when an account exceeds the 1% maximum total risk limit?

When an account exceeds the 1% maximum total risk limit (maximum floating loss in PnL), the account is breached and permanently closed. All open trades are closed automatically and you will no longer be able to trade on that account. This breach cannot be reversed, reactivated, or appealed — a reset or reinstatement is not possible after an automated breach. There is no other solution to reactivate the account once this rule has been violated.

The 1% maximum total risk rule applies exclusively to Instant Funding accounts. It refers to your account's floating profit and loss (PnL) — the difference between your account balance and your equity. If this limit is exceeded at any moment while trades are open, the account is automatically breached, regardless of the final closed PnL. For example, on a $10,000 account, if your equity drops to $9,900 or below, the account is breached. On a $2,000 account, the maximum allowed floating loss is $20 (example only).

The 1% limit applies to the combined floating loss of all open trades. Multiple positions in the same direction are allowed as long as the total floating loss does not exceed 1% of the current balance. Market conditions such as spread and slippage can affect floating PnL and may trigger the rule even if the trade appears profitable or the final closed loss is under the threshold.

Updated on: 29/09/2026