A Soft breach is a warning for a trading violation of certain account rules, which don’t necessarily affect your long term risk management. If your account hits a soft breach level, all open positions will be automatically closed and you will receive a Trading Violation email.
You can have up to three soft breaches in challenge accounts. Only one soft breach in funded accounts. Once you've hit the maximum amount of soft breach limit, your account would be hard breached or forfeited.
What is a Hard Breach?
A Hard breach results when you've reached the drawdown limits, or you've exceeded your soft breach limit on your account. Once you've hit the maximum amount of soft breach limit, your account would be hard breached or forfeited.
A Hard breach means that you can no longer trade your account.
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