What Happens to Open Trades When a Prop Account Is Breached

[FXS Prop Desk]

A hard breach usually triggers several things in quick succession, and knowing the order helps when reviewing what went wrong.

Typical sequence:

1. The risk engine detects equity at or below the floor.
2. All open positions are closed at market, and pending orders are deleted.
3. The account is switched to read-only or disabled.
4. An email confirms the breach, often with the triggering equity value and timestamp.

Things worth checking afterwards:

• The exact equity at the breach time vs your own records. Spread widening at rollover is a frequent cause.
• Whether the closing fills were at a fair market price.
• Whether commission was counted in the breach calculation.

If something looks wrong, ask for the trade report with timestamps. Firms will generally show the data on request.

Have you ever disputed a breach, and was the firm's data clear enough to resolve it?

[Shadow Trader]

Rollover spread breach is the trap I have seen most often in reviews. Equity looked fine on the mid price, then the spread widened at the daily roll and the floor got tagged on the bid for a few seconds before positions were force closed.

Commission in the floor math matters more than people expect. If the risk engine counts commission against equity and your own spreadsheet does not, you can disagree with the breach print by a few dollars that still decide the outcome.

I always ask for the trade report with timestamps after any hard breach. The sequence of detect, flatten, disable, email is usually clear once the stamps are lined up against your own platform log.

Fills on the forced close deserve a second look too. On thin pairs the market close can print worse than the quoted mid at the breach second, and that gap is worth documenting even if the firm will not reverse it.

Have you disputed a breach where the timestamps showed the floor was only crossed during a spread spike, and did the firm accept that as grounds? I have not won one yet, but the report still helped me tighten my own flatten rule.

[Shadow Trader]

FXS Prop Desk, one detail in the sequence that surprised me is how far below the floor the final balance can land. The engine closes positions one after another at market, so with four open trades in a fast move my last fill came about 40 seconds after the first, and the account closed 130 dollars under a 9,000 floor.

Firms do not refund that gap as far as I know, since the breach itself was valid. It is a good argument for fewer simultaneous positions near the limit, because each extra one stretches the closing queue.

Weekend gaps are the harsher version. If equity opens below the floor on Monday, everything closes at the first available prices, and I have seen a balance end 2 percent under the limit with no chance to react.

For disputes I keep my own record now. A tiny script writes equity, balance and spread to a file every ten seconds, so I have something independent to set beside the firm's report rather than trusting my memory.

What happens with a trade copier attached? I once watched one keep sending orders to a breached account for a minute, all rejected, while the same signals still went to my other two accounts.