Drawdown and loss limits · Pro
Soft breach
What does Soft breach mean?
A soft breach is a violation handled with a temporary restriction or another limited consequence instead of immediate permanent account closure. Not every provider uses the term.
Example
A daily limit triggers liquidation and a lockout until the next session.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Read the consequence of the actual rule; a daily limit is not universally a soft breach.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.