Soft Breach vs. Hard Breach

Soft Breach vs. Hard Breach

​​​​​In proprietary trading, maintaining discipline and adhering to risk management rules is crucial. At TradeXProp, we enforce specific guidelines to ensure a fair and structured trading environment. One key aspect of our risk management framework is the distinction between Soft Breach and Hard Breach violations. Understanding these terms will help traders navigate our platform with confidence.
What is a Soft Breach?

A Soft Breach occurs when a trader violates a rule, but their account remains active, allowing them to continue trading. However, any positions that breach the rule will be immediately closed, and the trader must adhere to the guidelines moving forward.

Common reasons for a Soft Breach:

  • Trading during a restricted news event window.

  • Holding trades over the weekend (for accounts that do not have the weekend holding add-on in the Instant Funded X program).

While a Soft Breach does not result in account termination, traders should be mindful of these rules to avoid potential disruptions in their strategy.

What is a Hard Breach?

A Hard Breach is a more serious violation that results in the immediate failure of an Evaluation Account or the termination of a Funded Account. This type of breach occurs when a trader exceeds critical risk parameters, such as the Daily Loss Limit or Max Drawdown.

Common reasons for a Hard Breach:

  • Exceeding the Daily Loss Limit.

  • Hitting the Max Drawdown limit.

Unlike a Soft Breach, a Hard Breach means that the account cannot be recovered, and the trader must restart the evaluation process or apply for a new funded account.

Need Assistance? We’re Here to Help!

If you have any questions regarding breaches or need clarification on our trading rules, our support team is available to assist you. Reach out to us via:

📩 Email: support@tradexprop.com
💬 Live Chat: Available on our homepage → tradexprop.com
🤝 Discord Community: Join Here




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