Introduction
Max Open Risk is a real-time risk management rule used in PipFarm's Instant Funding Program. It is designed to protect trader accounts from excessive unrealised losses, without breaching the account.
Unlike PipFarm’s traditional challenges, Instant Mode accounts do not use Max Daily Loss. Instead, Max Open Risk monitors your account equity in real-time and acts the moment unrealised losses reach or exceed 2% of your starting balance. If triggered, all open positions are closed automatically, but the account remains active, allowing you to continue trading.
ℹ️ The rule applies to Instant Mode challenges only.
⚠️ Please also respect the Maximum Risk per Trade Idea rule and consider a one-hour cooling-off period before continuing the same trading idea.
Max Open Risk Limit
Max Open Risk is triggered when your unrealised loss on open trades reaches 2% of your initial balance.
The threshold is calculated using the following equation:
Balance - Equity > Starting Balance * 0.02
If your unrealised losses exceed this threshold, all open trades will be closed immediately.
Example
Let’s say you’re trading a $10,000 Instant Mode account:
Max Open Risk threshold:
$10,000 × 0.02 = $200
When your equity falls below $9,800, the system will close all open trades.
FAQs
Does Max Open Risk Breach My Account?
No. Reaching the Max Open Risk threshold does not breach your account. However, you should consider whether continuing to trade will breach the Max Risk per Trade Idea rule.
Can I reopen the same position if I close before Max Open Risk is triggered?
Yes. However, you should consider whether continuing to trade will breach the Max Risk per Trade Idea rule.