The full answer
If your account reaches or exceeds the defined hard breach limit according to the program's calculation method, the account can be breached.
Drawdown & risk
What happens if the account touches the Maximum Drawdown level?
If your account reaches or exceeds the defined hard breach limit according to the program's calculation method, the account can be breached.
Related questions
Drawdown & risk
Can open positions cause a Maximum Drawdown breach?
Yes. Account equity matters when monitoring trading risk.
Drawdown & risk
Can profitable trades offset a previous breach?
No. Once a hard breach has occurred, a later market recovery does not undo it.
Drawdown & risk
Do I need to use a stop loss?
Your requirement to use a stop loss depends on the rules attached to your specific program/account.
Drawdown & risk
What happens if a compulsory stop loss is missing?
Where the account requires stop losses, placing a trade without one may result in action being taken against the position or account according to the current trading rules.
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