FundedNext doesn’t have any risk limit in the Challenge Account. In Challenge Accounts, traders may trade freely without a limit—because those phases are meant to test strategy, flexibility, and adaptability.
To avoid excessive losses, protect capital, and build long-term sustainability, FundedNext recommends using 3% risk at a time in the FundedNext Account. Risk refers to the maximum potential loss/losses on a trade at a time based on stop-loss placement. If there is no stop-loss under 3 minutes, the trade will be considered 100% risk to the account balance. We are not limiting skilled trading; we are guiding traders toward consistency and professional risk behaviour.
High-risk trading may generate fast wins, but the same approach also leads to outsized losses that contradict long-term sustainability. To maintain 3% risk at a time is a balance between flexibility and protection—it allows freedom to trade while ensuring no single trade carries damaging risk to either the trader or FundedNext.
It applies to:
FundedNext Accounts
All trading styles, including manual or automated
All asset classes available on FundedNext platforms
All entries tied to the same trading idea/position, even if split into multiple orders
What if I don’t Follow This?
It’s important to understand that this policy is not designed to remove or punish traders. FundedNext is not banning or terminating anyone for breaking this guideline. Instead, the rule exists to help traders correct risky behaviors before they become destructive to their FundedNext Account’s performance. The escalation steps, including warnings, profit adjustments, and eventually the Disciplined Trader Program, are meant to provide guidance, structure, and accountability—not punishment.
1st Violation – Initial Reminder
If a trader exceeds the recommended 3% risk guideline for the first time, a reminder is issued along with a 50% reduction of the profit generated from that trade(s).
2nd Violation – Adjustment Phase
If the trader exceeds the guideline a second time, the full profit generated from that trade(s) is deducted, and additional trading boundaries are recommended to support better discipline moving forward. These include reducing the allowable risk to 1% at a time and limiting margin usage to 30%.
3rd Violation – Coaching & Improvement Path
If a third violation occurs, the trader is moved into the Disciplined Trader Program. This is not a punishment but a structured improvement track where the trader receives tailored guidance, reviews, and heightened accountability measures.
FundedNext is committed to supporting traders who want to grow, perform consistently, and build long-term trading careers. These recommendations are designed to protect both the trader and their simulated capital, not restrict skill or potential. Sustainable trading is not measured by how quickly profit is made, but by how reliably it can be repeated. By following these guidelines, traders place themselves in a stronger position to earn consistently, scale confidently, and develop the mindset of a disciplined professional. Our priority is to create an ecosystem where traders can thrive—not just pass a phase, but maintain success long after it.