TL;DR: In a FundedNext Futures Account, a soft breach occurs when a trader reaches the daily loss limit, pausing trading for the rest of the day but allowing trading to resume the next day. A hard breach happens when the maximum loss limit is exceeded, causing the account to be fully restricted, and trading can only resume after an account reset.
What is a Soft Breach?
If a trader reaches their Daily Loss Limit, their account will be in a Soft Breach state. This means their trading activity will be paused for the rest of the day, but they can resume trading the next day. This rule helps traders manage risk effectively while staying within their Maximum Loss Limit.
To learn more about Daily Loss Limit, click here.
What is a Hard Breach?
If a trader exceeds the Maximum Loss Limit, their account will experience a Hard Breach, and all trading activities will be paused. To get back to trading, the trader must reset their account for a fee.
To learn more about Maximum Loss Limit, click here.