You studied drawdown limits, profit targets, and daily loss caps—great. But buried in the fine print are hidden prop firm rules that can nuke your evaluation or funded account without warning. Think of them as “kill switches”: break one and everything else you did right doesn’t matter.
This checklist highlights the most common hidden prop rules, how to spot them in the T&Cs, and simple ways to stay compliant across multiple firms.
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Why Prop Firms Use Hidden Rules
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Risk Hedge Gaps Copying your trades to firm liquidity isn’t always instant; extra limits reduce slippage exposure.
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Legal & Regulatory Banning certain instruments or news windows protects the firm from compliance blow-ups.
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Trader Quality Filter If you ignore details, you’re statistically riskier. Hidden rules weed out sloppy applicants.
Bottom line: hidden rules protect the firm’s bottom line. Knowing them protects yours.
Hidden Prop Firm Rules Checklist
1. News-Trading Bans
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What it is: No opening or closing trades X minutes before/after high-impact news (often NFP, CPI, FOMC).
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Why it matters: A spread blowout during news can wipe the firm’s hedge.
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How to comply: Load the firm’s economic-calendar feed into your platform; set alerts 15 min before restricted events.
Tip: Some firms allow holding a position through news if it was opened earlier—others don’t. Check the wording.
2. Minimum Hold Time / No Scalping
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Rule: Trades must be open at least Y seconds or minutes; ultra-fast exits void payouts.
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Trap: Many scalpers run 3-second flips during quiet Asia—violation logged automatically.
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Fix: Build a hard timer into your exits; close only after the minimum holds.
3. Maximum Lot Size Caps per Instrument
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Rule: Single ticket or aggregate lot cap on majors, minors or CFDs.
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Catch: Scaling in three tickets can exceed the aggregate cap even if each ticket is under the limit.
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Check: Sum all open lots on the symbol before adding.
4. Consistency of Lot Size
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Rule: Largest lot size cannot exceed average lot size by more than X percentage.
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Reason: Prevents “hit-and-run” lotto trades.
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Solution: Grow size gradually; see our Prop Consistency Rule Explained post for a full framework.
5. Time-of-Day Restrictions
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Typical clause: No new trades during the final five minutes of the trading day or over weekend roll.
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Why: Thin liquidity & swaps.
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Action: Platform alarm 10 minutes before close; auto-disable one-click trading.
6. Style- or Instrument-Specific Bans
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Examples:
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No grid-martingale EAs.
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No copy trading from another prop account.
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Specific CFD bans (e.g., NATGAS, US30) due to large tick size.
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Remedy: Email support before running exotic symbols—get it in writing.
7. Trade Copier Correlation Limits
Running two prop accounts with a copier? Many firms disallow > 90 % correlation with other accounts. They flag identical timestamps, lot sizes, and instruments.
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Quick compliance: Randomize entry offsets; vary lot fractions; alternate entry sessions.
8. Weekend Gap Exposure
Rule variants:
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Flat by Friday close on indices/crypto.
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Hold counts but lot size must be ≤ 50 % of weekday sizing.
If you swing trade, map weekend rules into your plan.
9. Rapid Lot Multiplier Jumps
Hidden line item: “No increase of position size > X × average lot within 24 h.” Prevents sizing from 0.5 lot to 10 lots overnight.
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Guard: Use milestone scaling (see Daily Drawdown Buffer guide) instead of impulse jumps.
10. Soft Equity Consistency Reviews
Even if the firm claims “no consistency rule,” many run a payout review. If 80 % of profit came from one lucky gold spike, expect questions or smaller scaling offers.
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Track: Equity curve slope; avoid one-day spikes. Cross-link: Daily Drawdown Buffer.
Quick Audit Table (Copy & Paste)
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Rule Type |
Is It in My Firm? (Y/N) |
My Limit |
Compliance Action |
|---|---|---|---|
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News bans |
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Hold time |
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Lot cap |
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Lot consistency |
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Time-of-day |
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Instrument bans |
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Copier correlation |
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Weekend gap |
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Lot multiplier jump |
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Equity spike review |
Complete this for every firm before day 1 of a challenge.
Linking Hidden Rules to Previous Guides
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Prop Consistency Rule Explained – deepen lot size variance understanding.
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Daily Drawdown Buffer – protects you when a hidden rule forces an unexpected close.
Add internal links after publishing.
FAQ
Do hidden prop firm rules apply to funded accounts too?
Yes—some firms are stricter after funding because real capital is at stake.
What if the rule isn’t listed at signup but appears later?
Firms can update terms. Stay in their Discord/Slack channels and re-read rules monthly.
Can I negotiate special permissions?
Rarely, but large-size traders sometimes get custom limits. Always secure written approval.
Are EAs allowed?
Depends on the firm. Many permit EAs but ban styles like martingale. Read platform T&Cs plus rulebook.
Disclaimer
Prop-firm policies change frequently. Always verify current rules on the firm’s official site. This article is educational only and not financial advice.
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