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