At FundingTraders, true trading success starts with proper risk management, not just hitting profit targets or loss limits. The firm prioritizes disciplined, calculated trading, aiming to foster professionals who build careers—not gamblers seeking rapid wins.
Why Risk Management Matters
Risking too much on a single trade is a common mistake among new and intermediate traders. While high leverage and aggressive strategies may look exciting, they often lead to account breaches, mental stress, and ultimately, long-term failure. Experts typically recommend risking no more than 1.5% of an account per trade idea, which helps traders:
Extend the lifespan of their account
Survive inevitable losing streaks, reducing the risk of ruin
Maintain emotional discipline
Stay within daily and overall loss limits
Consistent trading is about long-term strategy, not one big bet. This approach supports ongoing success and emotional stability.
Why FundingTraders Actively Monitors Risk
FundingTraders monitors accounts to spot risk-heavy behaviors that resemble gambling rather than disciplined trading. Key behaviors that may trigger a risk review include:
Risking 2% or more per trade idea/trade group
“All or nothing” approaches aimed at rapid passing/failing
Using excessive leverage or maximum lot sizes relative to account balance
Engaging in speculative news trading with no clear plan
Practicing extreme scalping or inconsistent trade durations
Rolling accounts: risking all on multiple accounts to game the system
These behaviors can result in account flagging, assignment to the Risk Management Group, or protective account restrictions.
The Risk Management Group
Accounts may be placed in the Risk Management Group after a risk team assessment. This comes with stricter controls, including reduced leverage and capped risk per trade:
Leverage Caps:
FX: 1:30
Metals: 1:9
Indices: 1:10
Oil: 1:10
Crypto: 1:1
Maximum risk per trade idea: 1%
For a $100,000 account, for example, that’s a max risk of $1,000 on a single trade idea
The cap applies to trades opened, floated, or closed in close proximity (within 2 minutes) on the same symbol and direction.
Returning to Standard Trading Conditions
Traders can return to normal leverage and lot sizing after two successful payouts, if:
The account is at its original starting balance
There are no open positions at the time of review
Requests for reassessment must be made through the Risk Team at [email protected].
Consequences and Guidance
Membership in the Risk Management Group is an opportunity to sharpen risk control while still earning from a funded account. However, violating the imposed rules results in immediate account termination—discipline is non-negotiable for continued funding.
Trading Psychology & Professionalism
Sustainable trading requires emotional balance and proper risk limits. Suffering large losses (e.g., 8% in two trades) puts immense pressure on traders and often leads to poor decisions. By risking 1% or less per trade, traders give their strategies room to recover and thrive, showing their commitment to consistent, sustainable growth.
FundingTraders exists to support long-term oriented, disciplined traders. Those unsure about their risk levels are encouraged to reach out to the Risk Team for support in cultivating safe, sustainable trading habits.