What is the 1% max floating loss rule?

Program Instant Funding
Severity Critical

TL;DR

Instant Funding has a 1% max floating loss cap across all open positions combined. Hit -1% floating once and you get auto-flattened + your split drops to 50% permanently. Hit it a second time and the account is breached.

How it works

  • What it measures: your combined floating PnL from all open trades on the account (i.e., unrealized PnL).
  • Trigger level: -1.00% floating (total across positions).
  • Consequence ladder:
    1. First time your combined floating hits -1% → the system auto-closes (flattens) all open positions, and your account’s profit split is permanently reduced to 50%.
    2. Second time it hits -1% → your Instant Funding account is breached.

Common gotchas

  • This is portfolio-level, not “per trade.” Four small losers can stack into one big problem.
  • “It was only floating”, yes. That’s the whole point. Floating is what kills accounts fast.
  • Auto-flatten means everything closes. If you were “waiting for it to bounce,” the system doesn’t care.
  • The split reduction is permanent on that account. Not “until next payout.” Not “for a week.”
  • If you’re already in drawdown and you add another position, you’re basically stacking explosives.

Example

You have four trades open:

  • NASDAQ: -0.3%
  • NASDAQ: -0.2%
  • EURUSD: +0.4%
  • XAUUSD: -0.9%

Total floating = -1.0%.

  • If it’s the first time: all trades are auto-closed and your split becomes 50% permanently.
  • If it’s the second time: the account is breached.

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