Disciplined and responsible trading is essential to FTT Funded. High-risk practices, such as excessive use of margin - defined as using 70% or more of available margin - do not conform to the principles of sound risk management. This behavior introduces unnecessary volatility, increases financial risk for both the trader and the company, and undermines the goal of long-term sustainable trading.
To promote professional trading, FTT Funded recommends keeping margin usage within 20-30% and applying proper risk management. Professional traders typically risk no more than 1% per trade and only use 20%-30% of their margin, which allows them to manage negative expectations and losing streaks effectively and maintain consistency. If this approach is not maintained, FTT Funded may take corrective action, including:
Formal Warning - A warning highlighting the importance of responsible risk management. Once a formal warning is issued, any subsequent violation of the margin rule will result in termination of the account, regardless of whether the 1% risk limit rule has been imposed. The warning serves as a final warning.
Leverage Reduction - Trading leverage can be reduced to impose better risk control.
Application of the 1% Risk Limit Rule - A restriction that limits a trader's exposure to 1% risk at any given time.