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Not every rule break ends your account — but the ones that do, do it instantly and silently.
Prop firm rules aren't all equal. Some breaches kill the account on the spot; others just void a single trade or a payout; a few are warnings. Knowing which is which is the difference between a recoverable mistake and a dead account.
Here's how breaches actually play out across the major firms, and which lines are truly fatal.
Crossing the max drawdown or the daily loss limit is almost always a hard breach: the account is terminated immediately, usually automatically, often before you can react. On a trailing drawdown this can trigger from a level you didn't realise had moved.
These are the lines to engineer your position sizing around — never the profit target.
Trading around banned high-impact news, holding over the weekend where disallowed, using a prohibited strategy (certain EAs, copy-trading, latency/HFT tricks), or breaking the consistency rule typically doesn't kill the account outright — but it can void the offending trades or deny the payout for that cycle.
Dangerous precisely because they don't look like a loss; you find out at withdrawal time.
On an evaluation, a hard breach usually means buying a new challenge (some firms offer a free reset or a discounted retry). On a funded account, a hard breach generally means the funded account is gone — though a few firms offer a paid reset or a reduced-balance restart.
Soft breaches usually leave the account alive but cost you the disputed profit. Read each firm's reset/retry policy before you breach, not after.
On most firms, yes — breaching the daily loss limit or the max drawdown is a hard breach that terminates the account immediately and automatically. Size every position so a normal losing streak stays well inside those limits.
Typically a soft breach: the offending trades are voided (or the payout for that period is denied) rather than the account being killed — but some firms do treat repeat or blatant news-straddling as a terminable offense. Check the firm's exact news rule.
After a hard breach, usually no — you re-purchase (some firms offer a free or discounted reset/retry). Soft breaches usually leave the account active but forfeit the disputed profit/payout. Policies vary, so verify the specific firm's reset terms.
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Educational content only — not financial advice and not affiliated with the firms mentioned. Rules change often; verify against a firm's official terms before relying on any detail.