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Rules guide

Max floating risk: the open-loss rule, in dollars

Some firms cap how much you may have underwater at one moment, separately from the drawdown floors. It is a rule about position size and stops, and it is checked while trades are open.

Updated 13 Sept 2026

What floating risk is

Floating risk is the unrealised loss on all your open positions at one moment. A max floating risk rule caps it as a share of your balance, whatever the day’s result so far.

Formula

open loss ≤ 2% × current balance, checked on every tick

The limit on every size

AccountTwo-step max open lossOne-step
$1,000$20No floating-risk rule
$2,000$40No floating-risk rule
$3,000$60No floating-risk rule
$5,000$100No floating-risk rule
$10,000$200No floating-risk rule

At the starting balance. The limit is a share of the current balance, so it grows as closed profit grows the balance.

What counts

  • On a $10,000 two-step account the limit is $200. Three trades each $80 down is $240 open: a breach.
  • One trade $150 down is inside the limit.
  • Closed trades do not count. Once a loss is closed it moves to the balance, and the drawdown floors take over.

How it differs from daily drawdown

Daily drawdown is a floor for the whole day’s equity. Floating risk caps what is open right now. On a $10,000 two-step account the daily floor allows $600 of loss in a day, but no more than $200 of it may be open at once. Stacking positions can breach floating risk while the account is far from its daily floor.

Sizing a trade to the rule

One standard lot of EURUSD moves about $10 per pip. With a 20-pip stop, one lot risks about $200, which sits exactly on the $10,000 two-step limit with nothing spare for spread or slippage. A size that leaves room, such as 0.8 lots (about $160 at the stop), keeps a fill that slips inside the rule.

At FundedTick

Max floating risk is 2% of the current balance on the two-step, measured on every tick. The one-step has no floating-risk rule. A breach caused purely by slippage on a fill can be waived after a support review.

Questions

What traders ask about floating risk.

No. It is the combined open loss across every position at one moment, not the planned risk of a single trade.

No. Only the two-step has one. The one-step has tighter drawdown floors instead.

At FundedTick, a breach caused purely by slippage on a fill can be waived after a support review.

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