How the 2% rule works in practice

In practice:

• You can open a trade(s) with up to 2% risk, close it, and later open another trade(s) with up to 2% risk again — as long as you never have more than 2% total open risk at the same time.
• However, please keep in mind that if your open trades are affected by real-world market conditions such as slippage, gaps, spread widening, liquidity or illiquidity, swaps, or commission costs — and the resulting total loss from those positions exceeds the 2% risk limit — this will be treated as a violation.
• This policy exists to ensure that traders remain fully responsible for execution realities and true market conditions, just as they would be when managing actual live capital.
• Therefore, while you can theoretically risk up to 2% per trade, we strongly recommend using a slight risk buffer to account for these variables and avoid unintentional breaches.
• You may lose up to your allowed daily drawdown limit of 8%. The 2% risk limit applies to exposure at a given moment, whereas the daily drawdown limit covers your total realized losses within a trading day.

Key takeaway

Your total combined risk across all open trades must never exceed 2% of your account balance. You are fully responsible for managing your lot sizes, stop levels, and trade timing to keep your exposure within this limit.

If you lose more than 2% in a single day, our risk advisors will closely monitor all positions taken on your account going forward to ensure strict compliance with our risk exposure rules.