If you have been comparing prop firm rules, you may have come across the term Max Risk Per Position, or MRPP.
At Instant Funding, this is also referred to as Risk per Trade Idea.
The rule is designed to limit how much risk can be attached to a single trading idea, rather than looking only at each individual position separately.
Here’s how it works.
What is Max Risk Per Position?
Max Risk Per Position sets a maximum amount of risk that can be attached to one trade idea at any given time.
A trade idea can include multiple positions if they are opened on the same instrument and in the same direction.
For example, if you open two EURUSD Buy positions, they are treated as one trade idea. This means the combined risk across both positions must remain within the permitted Risk per Trade Idea limit for your account.
A EURUSD Buy and a EURUSD Sell, however, would be treated as separate trade ideas.
The exact limit depends on the Instant Funding account you are trading.
How is the limit calculated?
The Risk per Trade Idea limit varies between products, so it is important to check the rules that apply to your specific account.
For example, if an account has a 3% Risk per Trade Idea limit and a Starting Balance of $10,000, the maximum permitted risk attached to one trade idea would be $300.
If several positions form part of the same trade idea, their combined risk is used when determining whether the limit has been reached.
How is risk measured?
Risk is based on the potential or unrealised loss attached to your trade idea.
Where a Stop Loss is set, the potential loss up to the Stop Loss can be used as part of the calculation.
Where there is no Stop Loss, the calculation can instead take factors such as floating equity and realised PNL into account.
This is why splitting the same trading idea into several smaller positions does not necessarily reduce the amount of risk being counted.
What if I close and reopen a position?
Closing a trade does not always mean the trade idea immediately resets.
If you close a position and reopen the same instrument in the same direction within 10 minutes, the positions can still be treated as part of the same trade idea.
This is designed to ensure the rule considers the overall trading idea rather than only the number of individual orders placed.
What happens if I exceed the limit?
Where Risk per Trade Idea applies, exceeding the permitted limit results in a hard breach of the account.
The rule is separate from other account requirements, including Daily Loss limits, Maximum Loss limits, drawdown rules and other product-specific risk parameters.
Staying within one rule therefore does not automatically mean all other account requirements have been met.
Does Max Risk Per Position apply to Clarity accounts?
Across the Clarity range, Max Risk Per Position does not apply to IF Micro Clarity, One-Phase Clarity or Instant Funding Clarity.
Other account rules and risk parameters still apply to these products.
For accounts where the rule does apply, you can find the full calculation, examples and product-specific limits in our Risk per Trade Idea FAQ.
The key takeaway
Max Risk Per Position, or Risk per Trade Idea, limits how much risk can be attached to a single trading idea.
Multiple positions on the same instrument and in the same direction can be grouped together, meaning the rule looks at the combined risk behind the idea rather than each trade in isolation.
Because the limits and calculations vary between Instant Funding products, always check the latest rules for your specific account before trading.
