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What are the Soft Breach and Hard Breach rules?

An overview of the difference between a Hard Breach and a Soft Breach rule.

Written by Todd Hodges

At Top One Trader, rule violations fall into two categories: a soft breach (a minor violation where the offending trades are closed and you can keep trading) and a hard breach (a serious violation that closes the account).

In short: A soft breach closes the trade(s) that broke the rule but your account stays active. A hard breach means immediate and irreversible deactivation of the account and forfeiture of any gains.

1. Soft breach

A soft breach is a minor violation. When this happens, we will close out the trade(s) that broke the rule, but you can step back in and keep trading, whether it is your challenge account or simulated funded account.

Account type

Soft breach limit

1-Step FLASH

No limit

1-Step NOVA

No limit

2-Step PRO v2

8 soft breaches (all stages)

Instant Funding

10 soft breaches, after which it turns into a hard breach

Instant Prime

5 soft breaches

Soft breach violations:

  • Opening a trade without a stop-loss.

  • Allowing more than a 2% loss per symbol on open trades or a 2.5% loss on all open trades. Should this happen, EquityShield will protect your account by automatically closing trades in most cases.

  • Funded Accounts have a max lot size rule based on the account size, therefore if the total lots placed exceed the max lots, all open trades will be closed. See Are There any Lot Size Restrictions? for the max lot sizes.

2. Hard breach

This is more serious. If this happens during a challenge, or in your funded stage, your account will be closed and any gains forfeited. Breaching these levels means immediate and irreversible deactivation of the account, regardless of the breach size. Any ongoing trades may be force-closed as part of the enforcement process. Account reopening after such breaches is not possible.

Hard breach violations:

Soft breach

Hard breach

Severity

Minor violation

Serious violation

What happens

Offending trade(s) are closed

Account is closed, gains forfeited

Can you continue?

Yes

No, reopening is not possible

Examples

No stop-loss, 2% / 2.5% open loss, exceeding max lots

Daily or total drawdown hit, 30 days inactivity, prohibited strategies

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