- admin
- 0 Comments
- 15 Views
The Maximum Loss Per Trade Policy is a rule that limits the amount of risk you can take on any single trade idea. This is designed to promote responsible trading and protect both your account and the firm’s capital.
Traders are not allowed to risk or lose more than 1% of their account Initial Balance on any single trade. This means that for every position you open, the maximum potential loss based on your stop-loss must not exceed 1% of your account size.
Example:
If you are trading on a $50,000 account, your equity must never fall below $49,500.
Should your equity at any time drop beneath this level due to open positions, the account
will be breached, regardless of whether the positions later return to profit.
This rule is designed to enforce disciplined risk management and prevent over-leveraging
or gambling behaviors.
