Introduction
Funded account rules constitute the formal guidelines and constraints that traders must follow when trading with firm‑provided capital. These rules enforce risk management, trading consistency, and operational discipline.
Account Types and Progression
- Traders typically pass through evaluation (simulated challenge), sim‑funded, and live‑funded account stages.
- Requirements, constraints, and withdrawal options vary at each level.
- Live‑funded accounts generally impose stricter risk limits than evaluation or sim‑funded stages.
Profit Targets and Trading Day Requirements
- A set profit objective must be reached under drawdown and consistency constraints.
- Pro‑type accounts often require eight qualifying trade days; Straight‑to‑Funded programs may require ten.
- Each trading day must meet minimum profit thresholds to count toward requirements.
Daily Loss and Maximum Drawdown Limits
- Daily loss limits range from small fixed amounts to percentage‑based thresholds of the account size.
- Maximum drawdown may be static or trailing; some programs freeze drawdown when account reaches starting balance.
- Breaching limits may trigger automatic liquidation or account termination.
Consistency Rules
- A constraint often limits profit per day to a percentage of total profits (e.g. 30 %).
- Excess profit on one day must be balanced by trading until the ratio falls within limits.
- Violations may result in warnings, payout denial, or account forfeiture.
Position Size and Trade Style Restrictions
- Contracts and positions are capped per account tier.
- Restrictions commonly include prohibition on hedging across accounts, copy‐trading, micro scalping, high‑frequency trades, or latency arbitrage.
- Inconsistent size strategies (e.g. using very large positions early then shrinking) are discouraged.
Inactivity Regulations
- Traders must execute at least one trade within a defined interval (e.g. every 21 or 30 days).
- Failure to do so may result in immediate account closure and fabrication of payout eligibility.
Withdrawal Policies and Profit Sharing
- Initial payout eligibility often requires a minimum number of benchmark or qualifying days.
- Initial payouts may be limited (e.g. max 50 % of profits), later increasing to full profit share.
- Profit share may range from 60 % to 100 % to the trader, sometimes with tiered scaling.
Trading Windows and Instrument Guidelines
- Trading is allowed only in approved hours; positions often must be closed well before market close.
- Only specified asset classes may be traded, commonly futures or equities as defined.
- Trading within a few percent of exchange price limits is frequently prohibited.
Compliance and Risk Controls
- Use of required stop‑loss orders on all positions is often mandated.
- Firms may monitor and intervene by flattening positions or suspending accounts if rules are breached.
- Traders are expected to maintain contactability and comply with conduct policies.
Growth and Scaling Mechanisms
- Scaling plans adjust contract size and risk limits in line with increased account balance.
- Risk teams may issue adjustments or “shoulder taps” during significant drawdown to refocus trader strategy.
- Advancement to higher capital tiers or payout levels is typically performance‑based.
Conclusion
Funded account rules create a disciplined trading framework. They ensure that capital is used responsibly, trading is performed consistently, and risk remains controlled. Traders who comply can access leveraged capital and profit opportunities, while rule violations often result in forfeiture or account closure.
