Prop firms use a variety of rules within their Terms of Service (ToS) to regulate accounts. It's often in their best interest for traders to fail within these guidelines, so it's crucial that you understand them fully. Here’s how you can ensure you don't get caught out by unexpected restrictions.

Common Rules to Watch Out For:

1. Maximum Risk Per Trade:
   • Know the maximum risk you can take on any single trade to avoid automatic breaches. This can be a sneaky one, so it’s always better to confirm with customer support before taking any trades.
2. Maximum Allowable Lot Sizes or Margin Usage:
   • Be aware of the largest position size you’re allowed to trade to stay within permitted limits. You should avoid prop firms that have margin rules as this can be extremely difficult to calculated because whatever leverage they offer plays a roll with margin usage.
3. Minimum Trade Duration:
   • Some firms require trades to stay open for a minimum amount of time. Closing trades too quickly can disqualify them.
4. Trailing vs. Static Drawdown:
   • Understand whether the firm uses a trailing drawdown (which moves with your account balance) or a static drawdown.
5. Mandatory Stop Loss:
   • Check if the firm requires a stop loss for every trade. Ignoring this can lead to breaches.
6. Restrictions on Expert Advisors (EAs) and Copy Trading:
   • Some firms limit or prohibit the use of automated trading systems or copying trades from master accounts.
7. Market Reset Times:
   • Confirm the firm's market reset time, which might differ from the standard 5 PM EST. This can affect your trading schedule.
8. Different Rules for Challenge vs. Funded Accounts:
   • Rules might change once you move from a challenge account to a funded account. Be sure you understand any differences. For example: Perhaps you can use an EA in the challenge phase but not in the funded phase
9. Rule Changes Without Notice:
   • Some firms change their rules without notifying traders. Regularly review the latest ToS and ask for clarification if anything is unclear. Prop Firm Match has a new rules page that flag any changed to ToS of prop firms listed on their site.
10. News trading restrictions
    • Various prop firms have limitations on if you can hold trades through news, open trades close to news. Some don’t allow any news trading whatsoever.
11. Trading with a VPS, VPN, Traveling while trading
    • It is so important to get the green light from prop firms before trading from your phone if you are travelling. Make sure to check the conditions if you are planning to use a VPS or VPN. If you have multiple IPs logged on your account, this is one of the biggest ways prop firms deny payouts.
12. Trading Styles
    • Confirm that your trading style is okay. If you are a swing trader can you hold over the weekend? Are they okay with scalping? There are always prohibited trading styles listed in their FAQ, so be aware of what is acceptable.

Proactive Measures

Read the FAQ Thoroughly: The firm's FAQ should list all rules that could result in account breaches. However, some firms conveniently omit certain details. If anything is unclear or seems too vague, it's better to contact customer support and get clarification before you start trading.

Check out prop firm match Rules section if you are trading with a prop firm listed on their website. They will list any uncommon rules that the prop firm might have.

Email Support for Clarification: Don't hesitate to reach out to customer support with any questions. Getting clarity upfront can save you from costly mistakes later on. You should know the answer to everything listed above.