Drawdown and risk limits
Soft breach
A rule violation that triggers corrective action - a position closed, a warning, a review - without failing the account outright. The account survives, but the trade or the profit attached to it may not.
GFN’s figure
On a GFN account, a soft breach may result in a trade being closed or other corrective action rather than the account being terminated. The exact treatment depends on the rules attached to that account.
- Outcome
- Corrective action, not automatic termination
- Typical causes
- Missing compulsory stop, minimum-duration and news-window rules
- Escalation
- Repeated violations can prompt a review
In detail
Soft breach,explained
Soft breaches typically cover rules about how you trade rather than how much you lose: a missing compulsory stop, a trade held for less than the minimum duration, or profit taken inside a restricted news window.
Treating a soft breach as harmless is a mistake. Repeated ones are what prompt a manual review, and a review is where an account is looked at as a pattern rather than as a single trade.
Related
Terms thatcome with it
Most rules only make sense next to the ones they interact with. These are the entries this one depends on.
Hard breach
A violation serious enough to fail or terminate the account immediately. Exceeding the daily loss limit or the maximum drawdown is the usual cause, and a later recovery in the market does not reverse it.
Breach
Any violation of an account's published rules. Breaches are graded: a soft one triggers corrective action, a hard one fails the account. The word is used for both, which is why the grade matters more than the term.
News trading
Trading around scheduled economic releases, where volatility and spreads both spike at once. The strategy depends on execution quality at exactly the moment execution quality is at its worst, which is why most firms restrict it on funded accounts.
Stop loss
A resting order that closes a losing position at a predetermined level. It is the mechanism that turns a risk-per-trade figure into an actual limit rather than an intention.
Prohibited trading
Activity a firm bans because it targets the trading environment rather than the market. It covers exploiting errors and pricing delays, coordinated trading between accounts, and third-party account management.
Also governed by /rules/breach-and-what-happens
Ready when you are
Your capital stays yours.The risk is ours.
One evaluation fee, no time limits and up to 90% of simulated profits. Pick an account size and your credentials arrive by email within minutes.
No subscriptions or hidden fees
Payouts every 14 days
$400,000 max total allocation