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What is the 1% Risk Limit Rule?

Updated over 3 weeks ago

At OnlyFundsFX, our mission is to support sustainable growth and long-term success for every trader on our platform. To protect our ecosystem from high-risk behaviors and to align with professional trading standards, we have implemented the 1% Risk Limit Rule across all account types.

This rule ensures that traders follow proper risk management techniques and discourages overexposure, overleveraging, and gambling-like strategies that often lead to account breaches and long-term failure.


🎯 What Is the 1% Risk Limit Rule?

The 1% Risk Limit Rule means that traders must never risk more than 1% of their initial account balance on any single trade.

This includes:

  • Position sizing based on proper lot size calculations

  • Immediate and consistent use of stop-loss (SL) orders

  • Managing margin exposure to avoid risking too much capital at once


🧠 Why We Introduced This Rule

The majority of unsuccessful traders fail because they rely on unsustainable, high-risk strategies. These include:

  • Overleveraging to chase quick wins

  • Taking oversized positions without stop-loss protection

  • Relying on “one big trade” to make up for past losses

Professional traders, by contrast, limit their risk to 1% or less per trade, allowing them to stay consistent, adapt to changing markets, and grow their accounts methodically.


📝 Examples

Example 1: Single Trade

  • Account Balance: $100,000

  • Max Risk Allowed: $1,000

  • Your SL must limit your loss to $1,000 or less — e.g., a trade risking 2 lots should be capped with an SL that matches the 1% loss threshold.

If you breach this limit through improper sizing or no SL usage, your account may be reviewed, restricted, or terminated.


🔍 Who Does This Apply To?

All traders at OnlyFundsFX — regardless of whether you are using:

  • Quickie Accounts

  • Two Round Challenges

  • Algorithmic Affair

  • Live Stage Accounts

There are no exceptions. The 1% rule is universal and automatically enforced through manual audits and system alerts.


❗What Happens If You Violate the Rule?

Violating the 1% Risk Limit may result in:

  • ❌ Immediate account breach

  • Forfeiture of profits earned from trades that broke the rule

  • ❌ Ineligibility for payouts or refunds


🎁 How Does This Rule Help You?

  • ✅ Builds sustainable trading habits

  • ✅ Encourages precision, patience, and strategy

  • ✅ Protects you from emotional, impulsive decisions

  • ✅ Prepares you for long-term success as a professional trader

This isn’t a limitation — it’s a pathway to consistent growth, which is the hallmark of every successful trading career.


💬 Questions?

If you’re unsure how to size your trades according to the 1% rule, need help calculating your lot size, or want to review your account for compliance — contact us via Live Chat or email support@onlyfundsfx.com.

We’re here to help you trade smarter, not riskier.

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