Risk and Exposure

One post, one question: what can a trader actually lose on a simulated prop firm account. It states the number the exposure is capped at, sourced against the rulebook clause that sets it, and separates what a losing trade costs from what a losing month costs. Written for a trader who wants their real downside stated in one number before they pay.

Articles in this category

• Apex Inactivity Rule Explained

  Understand the Apex Trader Funding inactivity rule, the 7-day minimum trading requirement for payouts, and the CFTC simulated environment definition.

• Can You Lose Money With a Prop Firm?

  Your loss is capped at the fee you pay on simulated capital. You never owe trading losses. The one number that is your true exposure, sourced.

• Daily Loss Limit: Clock, Equity, Breach

  A prop firm daily loss limit can use day-start balance or live equity. See when floating loss counts, when the limit resets and what triggers a breach.

• Martingale and Grid Rules at Prop Firms

  No prop firm rulebook we read says martingale. They ban the behaviour instead. Which clause reaches a recovery ladder, and the number that stops it first.

• Prop Firm Balance vs Equity Explained

  Learn why balance can look safe while equity breaches a rule, how open profit and loss changes the number, and what to monitor in real time.

• Prop Firm Margin Call vs Loss Limit

  Separate broker margin requirements from prop firm loss limits so you know whether a position is blocked, liquidated, or the account is breached.

• Prop Firm Platform Outage: Preserve Your Proof

  Use a timestamped evidence checklist when a prop firm platform fails, then compare the incident with the written outage and dispute rules.

• Prop Firm Profit Target: The Pass Ratio

  A profit target is only as hard as the drawdown it runs against. The ratio math, one-step vs two-step, a sourced firm table, and why Ordane has no target.

• Prop Firm Shuts Down: Account & Unpaid Profit

  If a prop firm shuts down, account access ends while fees and approved unpaid profit become company obligations. See the evidence and protections to check.

• Prop Firm Stop Loss Slippage Buffer

  Learn why a stop at the exact loss limit can still breach an account and how to leave room for slippage, spreads, swaps, and commissions.

• Static vs Trailing Drawdown at Prop Firms

  Static vs trailing drawdown at prop firms: see how each floor moves, how balance and equity change the result, and why a profitable account can fail.

• Two Loss Limits: Which One Closes You First

  Two loss rules run on the same account and only one resets. How to tell which is binding today, and how many maximum losing days you have left.

• What a Payout Does to Your Drawdown

  A withdrawal lowers your balance but not always your loss floor, so your buffer can shrink. How static and trailing floors differ after a payout.

• What Happens When You Breach a Prop Firm Account?

  A breach closes the account, force-closes open trades, and forfeits unpaid profit. What you keep, what you lose, and which rules can breach you.