VERSION HISTORY
Max-Position-Loss | IQ Capital Help Center
Fetches the article and compares it with Version 2.
▸Version 2September 10, 2026, 4:59 PM+3−3
Changes shown against Version 1.
- Potential slippage
- Trading fees/commissions
- Spread
All of these components are taken into account when calculating your maximum allowable position loss. This ensures that your total risk exposure per market remains within the permitted limit.
Your maximum risk per market:
- Challenge: 1% of starting balance
- Funding & Instant Funding: 0.5% of starting balance
Example (Evaluation)
Account: $50,000 → 1% risk = $500
Example (Funding)
Account: $50,000 → 0.5% risk = $250
What happens in case of a rule violation?
Section: What happens in case of a rule violation?
− A violation results in a soft breach:
+ A violation results in a soft breach: Even merely approaching or exceeding the limit on an open position can be considered a violation.
- The position is automatically closed
- The account remains active
- Trading can continue immediately
− After the 3rd violation, a hard breach occurs and the account is closed.
+ After the 3rd violation, a hard breach occurs and the account is closed. The maximum position loss is not reset. Fees and slippage may affect the limit.
Purpose of this rule
- Prevents excessive concentration in a single asset
- Avoids hidden over-leverage through multiple orders
- Encourages clean and professional risk management
- Reflects realistic trading conditions in live markets
Section: Purpose of this rule
− Important! Trades in the individual markets are counted together as one position. Therefore, it is entirely possible that the maximum SL (Stop Loss) for a single trade has not yet been reached because another trade was still open in that market. A position can consist of multiple trades, and multiple trades always remain a single position.
+ Important! Trades in the individual markets are counted together as one position. Therefore, it is entirely possible that the maximum SL (Stop Loss) for a single trade has not yet been reached because another trade was still open in that market. A position can consist of multiple trades, and multiple trades always remain a single position. Allow for a safety margin below the 0.5% limit (e.g., 0.25%–0.4%) to account for slippage and widening spreads. In volatile markets such as the Nasdaq (NQ), it is recommended to trade smaller positions such as the Micro Nasdaq (MNQ). Two simultaneous trades share the $250 limit, so each trade may risk a maximum of $125.
SHA-256 dd6899eaba4015ca7bf483b91ea4c1ca8e3c404ba686a0134ca5544a3221a2a1
▸Version 1August 29, 2026, 5:07 AM
First archived version.
Why does this rule exist?
The Max Position Loss rule ensures that your risk per market is strictly limited.
What counts toward the Maximum Position Loss?
The Maximum Position Loss includes all potential costs and losses associated with a position, including:
- Unrealized price loss
- Potential slippage
- Trading fees/commissions
- Spread
All of these components are taken into account when calculating your maximum allowable position loss. This ensures that your total risk exposure per market remains within the permitted limit.
Your maximum risk per market:
- Challenge: 1% of starting balance
- Funding & Instant Funding: 0.5% of starting balance
Example (Evaluation)
Account: $50,000 → 1% risk = $500
Example (Funding)
Account: $50,000 → 0.5% risk = $250
What happens in case of a rule violation?
A violation results in a soft breach:
- The position is automatically closed
- The account remains active
- Trading can continue immediately
After the 3rd violation, a hard breach occurs and the account is closed.
Purpose of this rule
- Prevents excessive concentration in a single asset
- Avoids hidden over-leverage through multiple orders
- Encourages clean and professional risk management
- Reflects realistic trading conditions in live markets
Important! Trades in the individual markets are counted together as one position. Therefore, it is entirely possible that the maximum SL (Stop Loss) for a single trade has not yet been reached because another trade was still open in that market. A position can consist of multiple trades, and multiple trades always remain a single position.
SHA-256 4e3b8377174bbf18b96f25b67dd41fd7a93c4c65b8886762f308820d7b14e7a3