What is a breach?
Quick answer
A breach is a violation of a prop firm's hard rule, such as the daily or maximum loss limit, that ends the trading account. A breached account stops trading and cannot pass. Firms record the rule, time and figures involved, and often offer the trader a discounted reset.
Detailed answer
A breach is the most common way an evaluation ends.
Common causes
- Equity falling below the daily loss floor.
- Equity reaching the maximum loss floor.
- Trailing drawdown floor reached.
- Holding a position over the weekend where banned.
- A manual breach for prohibited conduct.
What happens
- The account stops trading.
- Its status changes to breached.
- The reason is recorded.
- The trader is notified.
Hard breach versus other outcomes
Not every rule violation is a breach. Some rules reject an order instead, and others flag the account for review.
Example
A trader's daily floor is $95,000. A news move takes equity to $94,980 on an open position. The account breaches at that moment.
On PropExecutor
Breaches are decided on the price tick that crosses the limit and recorded with the rule that ended the account. In the API report they appear as rule codes, such as DAILY_DRAWDOWN, with observed and threshold values.
PropExecutor team · Updated
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