Probation Explained

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Definition

A warning status placed on an account for compliance issues. The account remains active but may have restrictions. Specific compliance items must be resolved, and payouts may require additional review. Details are typically visible in the trader's dashboard.

Explanation

When placed on probation, traders can continue trading but face heightened scrutiny and potential limitations on position sizes or trading strategies. The firm monitors trading activity more closely during this period, and any further violations could result in account termination. Traders must actively address the compliance issues outlined in their dashboard to restore full account privileges.

Example

A trader on a $100k account who violated the consistency rule by making 80% of profits in one day gets placed on probation, requiring them to demonstrate more balanced daily returns over the next 30 days before payouts resume normally.

Why It Matters

Probation is your last chance to correct trading behavior before losing your funded account entirely.

Common Misconceptions

  • Being on probation means you can't trade at all

    Reality: Probation allows continued trading but with restrictions and increased monitoring

  • Probation automatically goes away after a certain time period

    Reality: You must actively resolve the specific compliance issues listed to exit probation status