Updated 2026-03-08
FXIFY Maximum Total Loss Rule Explained
FXIFY
Quick Answer
FXIFY's Maximum Total Loss is 10% trailing drawdown from the initial account balance.
This rule is calculated as the maximum allowed loss from your starting balance, tracking the lowest point your account reaches. It includes both realized and unrealized losses, meaning open positions count against this limit. Breaching this rule results in immediate account termination.
Key Rule Details
Limit
10%
Dollar Value ($100,000)
$10,000
Basis
trailing drawdown
Resets
Never (static)
Breach
Account terminated
Calculation Example
Common Mistakes
Ignoring Open Position Losses
Traders often forget that floating losses on open positions count toward the 10% drawdown limit. On a $100,000 account, if you're down $8,000 in closed trades and have $3,000 in open losses, you've breached the rule at $11,000 total drawdown even though you haven't closed the losing positions.
Misunderstanding Trailing vs Fixed
Some traders confuse this with a fixed drawdown from peak balance, but FXIFY uses trailing drawdown from initial balance only. On a $50,000 account, even if you grow to $60,000, your maximum loss limit remains $5,000 from the original $50,000 starting point, not from your new high.
Overleveraging After Small Losses
Traders increase position sizes to recover from initial losses, not accounting for reduced available drawdown. After losing $6,000 on a $100,000 account, only $4,000 drawdown remains, but traders may still risk $8,000 positions thinking they have the full 10% buffer available.
Weekend Gap Risk Exposure
Holding large positions over weekends can cause gap openings that instantly breach the 10% limit. A trader with $7,000 existing drawdown on a $100,000 account holding positions worth $50,000 could see a 10% weekend gap immediately terminate their account by exceeding the remaining $3,000 buffer.
Protection Strategies
Set Personal 7% Drawdown Limit
Establish your own maximum drawdown at 7% to create a 3% safety buffer before FXIFY's 10% limit. On a $100,000 account, stop trading when you reach $7,000 in losses rather than risking the full $10,000 allowed. This buffer protects against unexpected market moves or miscalculations.
Use 1% Risk Per Trade
Limit individual trade risk to 1% of account balance to prevent large single losses. On a $50,000 account, risk only $500 per trade, requiring 10 consecutive losses to reach the 10% limit. This conservative approach allows multiple attempts to achieve profitability while protecting your drawdown allowance.
Set Equity Alerts at 8%
Configure trading platform alerts when account equity falls to 8% drawdown from starting balance. This gives you early warning before approaching the 10% termination threshold. For a $100,000 account, set the alert at $92,000 equity to take protective action before reaching the $90,000 breach level.
Close All Positions Before Major News
Exit all trades 30 minutes before high-impact news releases to avoid volatile moves that could breach drawdown limits. Even though FXIFY allows news trading, unexpected volatility can quickly consume your remaining drawdown buffer, especially when combined with existing floating losses from open positions.
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Frequently Asked Questions
Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on FXIFY's official website before purchasing a challenge. Updated 2026-03-08.