Funding Pips has introduced a significant update to their trading rules by setting a daily lot size limit of 10 lots for traders using the 1-Step and 3-Step account models. This new regulation, updated this week, aims to enhance trading discipline and risk management.
Understanding the 10 Daily Lots Size Limit Rule (Soft Breach)
The newly established rule stipulates that traders can open a maximum of 10 lots combined per day. Exceeding this limit triggers an automatic system response where any open trades will be closed, and the trader will be unable to execute further trades until the next day. This limit resets daily at midnight CE(S)T. It’s important to note that trades left open at midnight will count towards the following day’s lot allocation.
This rule applies strictly to the Master account of both the 1-Step & 3-Step models and is classified as a ‘soft breach.’ Unlike a hard breach, exceeding the daily lot limit does not result in the loss of the Master account.
Mechanics of the Daily Lot Limit
- Daily Limit Reset: Each day, traders can open positions totaling up to 10 lots. If this threshold is exceeded, the platform will automatically close all open trades, and trading capabilities will be suspended until the next calendar day when the limit resets.
- Impact of Open Trades at Midnight: Any positions that remain open at midnight are automatically counted towards the next day’s 10-lot limit.
- Non-Hard Breach Policy: This rule does not constitute a hard breach; traders will not lose their accounts for surpassing the daily lot limit, but will face trading restrictions until the reset.
Examples Illustrating the 10 Lots Rule
Example 1: Exceeding the Limit with Closed Trades
A trader opens and closes a 10-lot position in the morning. If they then open another 10-lot position in the afternoon, this action exceeds the daily limit, resulting in the closure of the second trade and a suspension of trading until midnight CE(S)T.
Example 2: Exceeding the Limit with Open Trades
If a trader has an open 10-lot trade and opens another 10-lot trade on the same day, the total of 20 lots exceeds the daily allowance. Consequently, both trades will be closed, and trading will be suspended.
Example 3: Trade Held Overnight
A trade of 10 lots held open from day 1 to day 2 counts towards day 2’s limit. Opening an additional trade of 0.01 lots on day 2 exceeds the 10 lots limit, thus all trades will be closed and trading disabled for the remainder of the day.
Funding Pips’ introduction of this daily lot size limit is a strategic measure to foster prudent trading and ensure that risk exposure is kept within manageable limits.
