Glossary · Prop Firms
Soft Breach
A soft breach is a recorded rule violation that does not close a trading account, unlike a hard breach, which ends it immediately. Consequences vary by firm: some pause trading for the day, some remove profits earned, and some just log a strike for tracking.
Why it matters
A soft breach gives a trader a second chance after a minor risk-limit slip instead of instant termination, which matters most when an oversized position or daily loss limit is hit unintentionally. It is not a free pass: repeated soft breaches usually escalate to a hard breach and permanent closure, so treat it as an early warning, not room to push limits.
Live data
Example
On some evaluation account types, a position closed automatically for exceeding a risk-per-trade limit is logged as a soft breach the first time, leaving the balance, profit target, and profit split untouched. A second occurrence typically closes the account outright, with no further chances. Separately, a soft breach tied to a daily loss limit at another firm simply pauses trading until the next session, with no strike carried forward.
Common misconception
Traders assume "soft breach" is a single standardized term, but its trigger and consequence differ by firm. One firm's soft breach is a daily loss limit pause that resets the next day; another's is a strike that can end the account on a second offense, sometimes removing accumulated profits instead of pausing trading. The count also does not always carry between evaluation and funded stages: some firms reset it on passing, others treat news trading restriction violations under a separate strike system that does carry over. Always check the specific firm's rule page rather than assume.
Related terms
See also
The FundedNext firm profile documents a clear soft breach and hard breach distinction tied to daily and maximum loss limits, worth reading alongside this entry.
Sources
- FundedNext: soft breach and hard breach definitions
- Blueberry Funded: soft breach on Flex 1-Step accounts
This mechanic is described generally across firms, but its exact trigger and stage-carryover behavior should be confirmed on each firm's rule pages.
Risk disclaimer: Trading carries a substantial risk of loss and is not suitable for everyone. Prop-firm evaluations charge fees and most traders do not pass. Nothing here is financial advice; figures can change, so verify current terms with the firm before purchasing.
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