What is the difference between breach, reject order and flag?
Quick answer
A breach ends the account. A rejected order is refused before it is placed, and the account keeps trading. A flag records that a rule was tripped without stopping anything, so your team can review it, typically before a payout. Each suits different kinds of rules.
Detailed answer
Choosing the right action avoids both lost money and unhappy traders.
Breach
- Ends the account immediately.
- Best for limits where the damage has happened, such as loss limits.
- Recorded with the rule, reason and time.
Reject order
- Prevents the violation instead of punishing it.
- Best for limits that can be checked before trading: lot size, instruments, positions, leverage, hours.
- The trader sees the refusal and can adjust.
Flag
- Records the event and lets trading continue.
- Best for behaviour that needs judgement, such as very short trades.
- Stored per account with the rule, reason, number of occurrences and first and last time seen.
Example: maximum lot per order of 5
- Reject: an order for 6 lots is refused.
- Flag: the order goes through, and the account is flagged for review.
Most firms reject on size limits, because preventing the trade is kinder than punishing it later.
PropExecutor team · Updated
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