Soft Breaches vs Hard Violations in Prop Firm Trading
Prop firms separate rule breaks into two categories: soft breaches and hard violations. Soft breaches slap your wrist. Hard violations kill your account instantly. Knowing the difference keeps you from getting blindsided by a rule you didn’t think mattered.
What Is a Soft Breach?
A soft breach is a rule break that doesn’t instantly fail your evaluation or funded account. It tells the risk desk you messed up, but not badly enough to wipe you out.
Soft breaches usually include:
- small scaling errors
- opening a trade a few seconds too early or late
- minor timing issues around news windows
- holding size slightly above a tier for a moment
The key point: you don’t lose your account, but the firm may restrict you, warn you, or require corrective action.
Examples of Soft Breaches
1. Entering 3 contracts when the limit is 2
You exceeded size briefly. You’re flagged, but not failed — unless it becomes a pattern.
2. Closing a trade a few seconds after a news window opens
Some firms give grace periods for borderline timing mistakes.
3. Using a trade copier with delayed sync
If the accounts don’t match perfectly but exposure stays reasonable, it’s often treated as a soft breach.
4. Slightly breaking consistency requirements
Payout accounts sometimes treat mild imbalance as a soft breach instead of a violation.
What Is a Hard Violation?
A hard violation is fatal. It instantly fails your evaluation or permanently kills a funded account. No appeal. No warning. The risk systems treat it as dangerous and shut your account down.
Hard violations include:
- breaking daily loss limits
- breaking trailing/static drawdown
- news trading violations
- contract size violations
- holding positions into restricted periods
If a rule protects the firm’s capital, breaking it is a hard violation — always.
Hard Violation Examples
1. Blowing through the trailing drawdown
The most common hard violation. One tick through the limit and the account is gone.
2. Taking a trade inside a banned news event
Covered in detail in news-trading restrictions. Zero tolerance. Zero exceptions.
3. Oversizing by a large amount
If your limit is 2 contracts and you enter 5, the system nukes the account instantly.
4. Holding positions into forced-flatten windows
Matches the rules in overnight flatten policies.
5. Trading during contract suspensions
If the firm flags a contract as suspended and you trade it anyway, you’re done.
How Firms Decide Soft vs Hard
Firms use three factors:
- Severity — how close the action was to losing money
- Intent — reckless vs accidental
- Repeat behavior — one-off vs pattern
If your action threatens the firm's capital, it’s always a hard violation. If it only threatens “protocol,” it’s usually treated as a soft breach.
Do Soft Breaches Add Up?
Yes. Prop firms track everything. Multiple soft breaches in a week or a month can lead to:
- temporary trading restrictions
- contract size reductions
- forced account pauses
- full account reviews
Too many soft breaches often become one hard violation.
Side-by-Side Comparison
| Feature | Soft Breach | Hard Violation |
|---|---|---|
| Account Status | Continues | Fails instantly |
| Severity | Low | High |
| Common Causes | Minor rule errors | Risk or news violations |
| Firm Response | Warning or note | Immediate flatten/closure |
| Trader Impact | Annoying | Account-ending |
Final Takeaway
Soft breaches are warnings. Hard violations are death sentences. Know which rules fall into each category so you never mistake a “small mistake” for one that ends your entire evaluation or funded career.