The full answer
If the account crosses a hard breach threshold, the account can be considered breached even if the market subsequently reverses.
Risk limits should be treated as hard boundaries, not rough suggestions.
Drawdown & risk
What happens if I exceed the Daily Loss Limit for only a few seconds?
If the account crosses a hard breach threshold it can be considered breached, even if the market reverses immediately afterwards.
Related questions
Drawdown & risk
Does a new day mean yesterday's losses disappear from my overall drawdown?
No. The Daily Loss Limit and Maximum Drawdown are separate rules - the daily calculation resets while your overall drawdown position does not.
Drawdown & risk
Should I trade right up to the Daily Loss Limit?
We strongly advise against it.
Drawdown & risk
What is Maximum Drawdown?
Maximum Drawdown is the total amount your account is permitted to decline before the account is breached.
Drawdown & risk
Is Maximum Drawdown the same on every GFN plan?
No. Different plans can use different Maximum Drawdown limits and calculation methods.
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