To promote disciplined execution and sustainable risk management within the Pay Later Model Funded Account, traders may not expose more than 1% of the account balance to the same trade idea.
This rule applies to the total combined exposure associated with a single market concept, bias, or directional setup, including multiple entries on the same instrument or correlated positions tied to the same trading idea.
The purpose of this rule is to prevent excessive concentration of risk and discourage aggressive position stacking within a single market scenario.
How the Rule Works
The maximum permitted risk for any individual trade idea is limited to 1% of the account balance.
This includes:
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Multiple entries on the same instrument
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Layered positions
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Scaled entries
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Correlated trades based on the same directional idea
All combined exposure associated with the same trading concept will be evaluated as one total trade idea risk.
Example
For a $50,000 account:
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The maximum allowed risk per trade idea is $500
If a trader opens:
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A first EURUSD position risking $300
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A second EURUSD position based on the same setup risking $250
The combined exposure would equal:
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$550 total risk
This would exceed the permitted 1% maximum risk allocation for a single trade idea.
This rule applies across all trading instruments and correlated positions.
Risk is evaluated based on total potential loss exposure, not on the number of trades executed.
Excessive concentration of risk within a single market idea may be considered inconsistent with the firm's risk management standards.
Violations of the Maximum Risk Per Trade Idea rule may result in payout adjustments, payout denial, account review, or other compliance actions within the Pay Later Model Funded Account environment.
