What is the difference between a hard breach and a soft breach?

Quick answer

A hard breach ends the account immediately, typically for loss limits. A soft breach is a rule violation that does not end the account but has a consequence, such as a refused order, profits removed from certain trades, or a review before payout. Firms use soft rules for behaviour that needs judgement.

Detailed answer

The terms are informal, but the distinction is useful.

Hard breaches

  • Daily loss limit.
  • Maximum loss limit.
  • Trailing drawdown.
  • Serious prohibited conduct.

Soft breaches

  • Lot size over the limit: the order is refused.
  • Trades shorter than a minimum hold time: flagged, profits may be excluded.
  • Consistency not met: the pass is delayed.
  • Unusual patterns: reviewed before payout.

Why the distinction matters

Ending an account for a minor or accidental violation feels unfair. Matching the consequence to the rule keeps enforcement credible.

Example

A trader accidentally places a 12-lot order where the maximum is 10. Under a soft rule, the order is refused and the trader adjusts. Under a hard rule, the account would end, which most traders would see as harsh.

On PropExecutor

Each rule's action is set in the rule builder: breach (hard), reject order or flag (soft), or block pass for objectives.

PropExecutor team · Updated

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