In Instant Funding Accounts, there are specific rules designed to promote disciplined trading and protect both the trader and firm capital. One key aspect of this is the soft breach system. A soft breach occurs when certain minor rules are violated. It does not result in account termination, but there is a soft breach limit of 10 for Instant Funding accounts.
Soft breach limit: 10. On the 10th soft breach the account is hard breached and terminated.
What is a Soft Breach?
A soft breach is a minor violation of the trading rules. When a soft breach occurs, the trade or trades that violated the rule will be automatically closed, but your account remains open, allowing you to continue trading. However, in Instant Funding Accounts, once your account reaches 10 soft breaches, it will result in a hard breach and your account will be terminated.
Soft Breach Violations for Instant Funding Accounts
Here are the main scenarios where a soft breach can occur in an Instant Funding account:
Violation | What Happens |
No Stop Loss on Trades | Entering a trade without an active Stop Loss will result in a soft breach. The trade will be automatically closed to protect your account. You can however purchase an add-on which allows you to trade without an active SL. Stop Loss Requirement |
Exceeding Max Lot Size | Instant Funding accounts have a max lot size limit based on your account size. If your total lot size exceeds this limit, all open trades will be closed automatically, triggering a soft breach. Max Lot Size Rule |
Holding Trades Over the Weekend | By default, holding trades over the weekend is not permitted for Instant Funding accounts. We offer an optional Weekend Holding add-on for traders who wish to hold positions over the weekend. If you have not bought the add-on and fail to close all open positions before the market closes on Friday, it will count as a soft breach. Weekend Trading Rules |
News Trading Violation | Executing or closing trades within the restricted news window is also classified as a soft breach. News Trading Rules |
Why the 10 Soft Breach Limit?
The 10 soft breach limit is in place to ensure traders remain disciplined and follow the rules closely. While soft breaches allow you to continue trading after minor violations, reaching the limit indicates repeated rule violations, which compromises both your account and the firm's capital. This system encourages responsible trading and risk management.
Conclusion
In Instant Funding Accounts, staying within the rules is key to long-term success. While soft breaches offer flexibility for minor violations, your account can only have up to 10 soft breaches. Once it reaches 10, it will result in a hard breach and your account will be terminated. Understanding and following the soft breach rules will help you protect your account and continue trading successfully.
If you have any questions or need further clarification about the soft breach system, feel free to contact our support team.