Glossary
What is Rule breach
Breaking a firm's rule: a loss limit, the news ban, consistency; the consequence, from halting the day to closing the account, is set by the firm.
How it works
Example
A $100,000 account, a 5% daily limit measured on equity: threshold 100,000 − 5,000 = $95,000. At 14:10 equity dropped to $94,900 with the balance at $98,000. That is a breach by $100, with trades still open.
Common mistake
Checking the limit against closed trades only: the breach is measured on equity, and a floating loss already counts.
Read next
Related terms
Frequently asked questions
- Where can I learn Rule breach step by step?
- In the Trading OS Academy: “Daily stop”.
- What is Rule breach related to?
- Daily loss limit (prop); Max loss limit (prop); Account equity; News trading restriction.
Plan versus outcome — for every trade
The Trading OS journal keeps the planned RR and the actual R of each trade side by side and computes expectancy from real results.
No sign-up: the journal runs in your browser. An account keeps your trades on the server.