At TradeXProp, we ensure fairness and transparency by maintaining structured trading rules for our Instant Funded Accounts. Understanding these rules is essential to managing your account effectively and avoiding breaches.
Below, we outline the key trading rules, including breach types, drawdown calculations, lot sizing, inactivity policies, and prohibited trading activities.
How is the Daily Loss Limit Calculated?
The Daily Loss Limit is the maximum amount you can lose in a single trading day.
Recalculation Time: This limit recalculates at 5 PM EST daily and is based on your previous day’s balance.
Example Calculation:
If your previous day’s balance was $100,000, your daily loss limit is $95,000.
If your floating equity is +$5,000, your new-day max loss is still based on $100,000, meaning the limit remains at $95,000.
Understanding Maximum Trailing Drawdown
The Maximum Trailing Drawdown is initially set at 8% and trails your closed balance (not equity) until you achieve an 8% return.
Lock-In Rule: Once you reach an 8% profit, the drawdown stops trailing and is locked at your starting balance.
Example:
Starting balance: $100,000 → You can draw down to $92,000 before breaching.
New high-water mark: $102,000 → New Maximum Trailing Drawdown = $94,000.
Account grows to $108,000 → Maximum Trailing Drawdown locks at $100,000.
At $170,000 balance → You would only breach if your account equity reaches $100,000.
Note : The Trailing Drawdown follows your closed balance until you reach an 8% return, then it locks permanently at the starting balance.
Is There a Breach for Inactivity?
✔ Yes. If you do not place at least one trade within 30 days, your account will be breached due to inactivity.
Can I Hold Positions Over the Weekend?
✅ Yes, with an add-on. Traders can hold positions over the weekend if they have purchased the Weekend Holding Add-On.
🚫 Without the add-on, all trades must be closed by 3:45 PM EST on Fridays.
Note :
If markets close early due to holidays, traders must adjust accordingly.
Failure to close trades without the add-on results in a Soft Breach—your trades will be closed, but you can continue trading when the market reopens.
Understanding Lot Sizing on the Trading Platform
Forex – 1 lot = $100,000 notional value.
Indices – 1 lot = 1 contract.
SPX500: 1 lot = 10 contracts.
JPN225: 1 lot = 500 contracts.
Cryptos – 1 lot = 1 coin.
Silver – 1 lot = 5,000 ounces.
Gold – 1 lot = 100 ounces.
Oil – 1 lot = 100 barrels.
Hard Breach vs. Soft Breach – What’s the Difference?
Soft Breach – A rule violation that does not terminate your account. Instead, all open trades that violated the rule will be closed, but you can continue trading.
Hard Breach – A critical violation that results in losing your funded account.
Hard Breaches Include:
✔ Exceeding the Daily Loss Limit.
✔ Exceeding the Maximum Trailing Drawdown.
✔ Being inactive for 30 consecutive days.
✔ Violating Prohibited Trading Activities.
📖 Related Article: Soft Breach vs. Hard Breach
Prohibited Trading Activities – Rules You Must Follow
To maintain fair trading conditions, all traders must comply with our Prohibited Trading Activities Policy. Any violation may result in an immediate hard breach and account termination.
🚫 Restricted Activities Include:
High-Frequency Trading (HFT) & Latency Arbitrage – Exploiting price feed delays or using ultra-fast execution bots.
Tick Scalping – Placing extremely short-term trades that last only a few seconds.
Hedging Between Accounts – Opening opposite positions in multiple accounts to manipulate risk exposure.
Trading During Restricted News Events – Executing trades within specific high-impact news windows.
Exploiting Platform Glitches – Using pricing errors, execution delays, or system loopholes for unfair advantages.
Copy Trading & Account Sharing – Mirroring trades from other accounts or allowing third parties to trade on your behalf.
📖 Learn More: Prohibited Trading Activities
Need Assistance?
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📧 Email Support – Contact us at support@tradexprop.com
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