2-Step Challenge: What is the 1% maximum risk per instrument?

2 min. readlast update: 05.28.2025

As you advance through the evaluation stages, to assist you with your risk management, we’ve set your maximum exposure in a single instrument to 1% in verification and funded accounts. If you exceed 1% drawdown in any one instrument, it will result in a soft breach. You can have up to 3 soft breaches, but if you exceed 1% maximum drawdown in any one instrument in a Funded account, it will result in a hard breach and your account will be disabled.

Correct Practice (Stage 2 - Verification Stage)

You open these trades on a 2-Step Stage 2 $100,000 Account:

  • EUR/USD: Risking $600

  • GBP/USD: Risking $700

  • Gold (XAU/USD): Risking $900

Even if your total risk is $2,200, each individual instrument’s exposure is below $1,000 — so you’re compliant.

Soft Breach (Stage 2 - Verification Stage)

You open trades on a 2-Step Stage 2 $100,000 Account:

  • EUR/USD: Risking $1,200 (1.2% of account)

  • GBP/USD: Risking $300

Here, EUR/USD exceeds the 1% limit, causing a Soft Breach #1.
You're allowed up to 3 soft breaches in the Verification Stage. Exceeding the allotted soft breaches is a Hard Breach, and your account will be disabled immediately and forfeited.


Hard Breach (Funded Stage)

You open trades on a 2-Step Funded $100,000 Account:

  • Gold (XAU/USD): Risking $1,500 (1.5% of account)

This single trade in Gold exceeds the 1% max exposure limit. Because you're on a Funded Account, this is a Hard Breach, and your account will be disabled immediately and forfeited.

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