1% Rule

R
Range4ex
Updated Sep 9, 20261 min read
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Single Trade Loss Limit (Instant Accounts)

On Instant accounts, no single trade is allowed to lose more than 1% of the Initial Account Balance.

If any one trade's loss exceeds this limit, the account is immediately failed.


📐 Formula

code
Max Loss Per Trade = 1% × Initial Account Balance

If a single trade's loss (realized or floating) exceeds this amount at any point, the rule is breached.


📊 Examples

Example 1 — Within Limit

  • Initial Account Balance: $10,000
  • Max Loss Per Trade = 1% × $10,000 = $100
  • A single trade closes with a loss of $80 → Within limit, no breach

Example 2 — Breach Case

  • Initial Account Balance: $10,000
  • Max Loss Per Trade = $100
  • A single trade's floating loss reaches $135 before being closed → Breach, account failed immediately, even if the trade is later closed at a smaller loss or in profit

Example 3 — Smaller Account

  • Initial Account Balance: $5,000
  • Max Loss Per Trade = 1% × $5,000 = $50
  • A single trade loses $60 → Breach, account failed

🔑 Key Points

  • Applies only to Instant accounts
  • Limit is 1% of Initial Account Balance per individual trade
  • Applies to both realized and floating (unrealized) loss on that trade
  • Breaching this on even a single trade results in immediate account failure, regardless of overall account performance

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