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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