What is the 3% Risk Per Trade Rule?

The 3% Risk Per Trade Rule is a strict risk management requirement that applies to all phases — challenge, verification, and funded accounts.

The Rule: You are strictly prohibited from risking (i.e., losing) more than 3% of your allocated capital on any single trade.

What This Means:

• If you have a $10,000 account, you cannot lose more than $300 on a single trade
• If you have a $100,000 account, you cannot lose more than $3,000 on a single trade
• This applies to the realized loss when you close a position

Why This Rule Exists: This rule ensures that traders practice proper risk management and don't blow their accounts on a single bad trade. Professional traders rarely risk more than 1-2% per trade — we allow up to 3% to give you flexibility while still protecting the capital.

Consequences of Violation: Any violation of this restriction results in immediate termination of your challenge or funded account. This behavior is considered poor risk management and a violation of our Terms and Conditions.

Best Practices:

• Always set stop-losses before entering a trade
• Calculate your position size based on your stop-loss distance
• Keep your risk per trade between 1-2% for optimal results
• Never move your stop-loss further away after entering a trade