In what instances would I breach the stop-loss obligation rule?

You would breach the stop-loss obligation rule in the following instances:

  1. Failure to set a stop-loss: A stop-loss is required for every position to control potential losses. If you enter a trade and fail to set a stop-loss, it is a violation of the rule.

  2. Not setting a stop-loss within 5 minutes: Traders have 5 minutes from entering a trade to set a stop-loss. If the stop-loss is not set within this time frame, it is a breach of the rule.

  3. Potential loss: The maximum risk per position is limited to 3% of the initial account balance. If you set a stop loss that would result in risking more than 3% of your account balance, it is considered a violation of the rule. A potential loss of 3% is immediately activated once the stop loss (SL) is set.

  4. Canceling the stop-loss without adjusting the position: If you cancel your stop loss without modifying your position (e.g., partially closing or adding to the trade), the system will not grant you the additional 5 minutes. To avoid this, always edit your stop loss rather than canceling it, as editing the stop loss maintains proper position management and compliance with the rules.

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