Slippage rule for Funded Live traders

Funded accounts slippage rule, scaling, and position limits.

The rule only applies to Funded Live traders.

The slippage rule applies to the $25K, $50K, $100K, $150K, and $250K accounts.

For traders who start directly on a Funded Live account

• If trading losses for the Funded Live account balance move to within $500 of the Maximum Drawdown, all positions will be liquidated, and the trading will be shut off.

• The account position limits will be adjusted to 1 contract + 10 micros, and the remaining balance will then be made available to trade.

• The account position limits will be subject to the scaling rule from these new position limits. 

For traders who move from a Funded Sim to a Funded Live account

• For traders that graduate from Funded Sim to Funded Live, position limits will be set according to the evaluation account the trader graduated from but may be adjusted based on the balance transferred from the Funded Sim account.

• If trading losses see the Funded Live account balance move below $500, all positions will be liquidated, and the account position limits will be adjusted to 1 contract + 10 micros.

• The account position limits will be subject to the scaling rule from these new position limits.

Please note: The Head of Trading reserves the right to increase the slippage limit if a trader is considered a high-risk trader or during times of extreme market volatility. In both cases, the trader will be notified. 

Why do we have the slippage rule?

TradeDay funds traders in the live market with real capital and manages risk as a professional trading group. Trimming risk limits after severe losses is a standard procedure in any trading institution.

This helps TradeDay protect capital from slippage during aggressive, volatile market moves. If a trader has only $500 left in the account, the reduced balance does not warrant the elevated risk limits.