What is the Floating Loss Rule?

Total unrealised floating loss across all open positions can never exceed 1% of account balance, checked continuously in real time regardless of where any stop-loss sits — this sits alongside, but is distinct from, the separate 1% cap on any single trade's risk.

A breach can happen in a single volatile instant — even a brief spike that reverses seconds later — and once it happens it's permanent: the market recovering, the trade closing in profit, or immediate corrective action afterward does not undo it.