What does the Instrument Cash Risk exactly mean?

The Instrument Risk Rule sets a limit on the maximum amount of risk you can have on a single instrument at any given time.

For example:

• If you have a Two Step Challenge account, your Instrument Risk Limit is 2.5%.

• This means that you cannot risk more than 3.5% on a single instrument (e.g., EUR/USD, NAS100, XAU/USD, etc.).

Example

Let’s say you have a $100,000 Two Step Challenge account:

You can risk:

• 1.0% on EUR/USD

• 0.5% on NAS100

• 0.5% on XAU/USD

• Each instrument is within the 2.5% limit, so it is fine

You CANNOT risk:

• 3.0% on EUR/USD (this would exceed the 3.5% limit)

• Even if your total risk is below 5.0%, exceeding 3.5% on a single instrument is a violation

Your dashboard tracks this in real-time, so you can always monitor your risk on each instrument and stay within the limits.