FTMO Rules Explained 2026: Every Threshold, Trap, and Reset

FTMO's rule sheet looks simple until you actually trade it. The traps aren't in the individual rules, they're in how the rules combine when you have a bad afternoon, hold over news, or finally hit your profit target on day 4.

This is the full 2026 ruleset, what each threshold actually means in practice, and the specific rule interactions that cause most failures.

Source: FTMO's official Trading Objectives page, plus FTMO's own FAQ. Checked against FTMO's official rules on 28 September 2026.

The headline rules at a glance

FTMO sells two products: the FTMO Challenge: 2-Step (Challenge, then Verification) and the FTMO Challenge: 1-Step. This first table is the 2-Step.

The 1-Step runs on tighter daily numbers and a trailing max loss:

A Trading Day, for the 2-Step minimum, is any day (00:00:00 to 23:59:59 CE(S)T) on which you open at least one position. Rewards: the 2-Step pays 80% of profit, rising to 90% through the Scaling Plan or the Premium Programme. The 1-Step pays 90%.

The maximum daily loss, calculated wrong by most traders

The daily limit is 5% of your initial capital on the 2-Step (3% on the 1-Step), subtracted from your balance recorded at 00:00 CE(S)T that day. Your equity (balance plus open P&L, swaps and commissions) cannot drop below it.

The limit is recalculated every day at 00:00 CE(S)T, midnight Prague time. On your first day the starting figure is the initial capital.

Example on a $100,000 2-Step account:

• Day starts at $100,000 → daily floor is $95,000
• You make $2,000 → balance now $102,000, but floor is still $95,000
• You then drawdown $3,000 → balance $99,000, you're fine
• If your equity, open trades included, drops below $95,000 at any second, the rule is breached
• Close that day at $102,000 instead and tomorrow's floor is $97,000 ($102,000 minus $5,000)

The trap: traders calculate the floor from their intraday peak. A green morning does NOT raise today's floor. It only moves at the next midnight recalculation, and it follows your closed balance down as well as up.

The maximum overall loss, the trailing version is different

Account types:

• 2-Step, Standard account: static 10% of initial capital ($90,000 on a $100K)
• 2-Step, Swing account: same static limit, but no news, overnight or weekend restrictions on the FTMO Account
• 1-Step: end-of-day trailing 10%. Each midnight the limit becomes your highest closing balance (or the initial capital, if higher) minus 10% of initial capital. It only rises, and it resets to 90% of initial capital when a Reward is withdrawn

On the 2-Step, the 10% max loss is static from initial balance, it does NOT trail your equity peak.

This is huge. If you're up 8% on a $100K account ($108K) and lose 5%, you're at $102.6K, fine. The $90,000 floor doesn't move with your equity. On a 1-Step, closing a day at $104,000 lifts the floor to $94,000, and it stays there even if you give the gains back.

Profit target, and the "consistency" rule that gets people

Profit target is straightforward: 10% on the Challenge and 5% on the 2-Step Verification, with all positions closed. On the 2-Step you need at least 4 Trading Days per phase.

What's NOT obvious: the 1-Step has a Best Day rule, on the Challenge and on the FTMO Account. Your Best Day cannot be more than 50% of your Positive Days' Profit, both to pass and to be eligible for a Reward. The 2-Step has no Best Day rule.

Example breach:

• Day 1: $300 profit
• Day 2: $200 profit
• Day 3: $5,000 profit (huge win)
• Total: $5,500 profit, but day 3 is 90% of it

FTMO does not treat this as a breach. You keep trading until your Best Day is 50% or less, so the pass or the Reward is delayed, not lost. The fix: spread profits across multiple sessions, especially leading up to your payout date.

How does the Best Day rule work with real numbers?

FTMO's definition: Positive Days' Profit is the sum of closed profits and losses from all profitable trading days, each day starting at 00:00 CE(S)T. Your Best Day is the single day with the highest closed profit. Losing days are left out of the sum.

Example only, round numbers on a 1-Step:

• Positive Days' Profit = $1,000 + $6,000 + $1,000 = $8,000
• Best Day share = $6,000 of $8,000 = 75%, above the 50% limit
• If Day 2 stays your Best Day, Positive Days' Profit must reach $12,000 ($6,000 × 2)
• So you need another $4,000 from profitable days, and no single new day can beat $6,000 or it becomes the new Best Day

Don't try to game it. FTMO lists hedging, opposing positions, or splitting one trade idea across days to get round the Best Day rule as Forbidden Trading Practices.

The hidden traps

Trap 1: stop-loss not placed

FTMO doesn't require a stop-loss (its FAQ says so, while still advising safety measures). But both loss limits are measured on equity, so one open loser with no stop can take out the daily floor in a single move. Always use a hard SL.

Trap 2: news trading on a funded Standard account

In the Challenge and Verification you can trade news freely. On a Standard FTMO Account you cannot open or close trades on the targeted instruments from 2 minutes before to 2 minutes after selected releases (NFP, CPI, rate decisions and others). A stop-loss or take-profit filling inside that window counts too. Swing accounts are exempt.

Trap 3: copy trading from another funded account

Holding multiple accounts through different registrations is not permitted. Total capital across all your accounts is capped at $400,000 per trader or strategy (before scaling), and FTMO can suspend accounts where identical strategies exceed that cap. That includes a third-party EA other traders are also running.

Trap 4: hedging across accounts

Banned. Opening opposite positions across connected accounts (a single account is the only exception) is a Forbidden Trading Practice. If you're long EURUSD on Account A and short EURUSD on Account B to game the floor, expect both accounts to be actioned.

Trap 5: martingale / grid

FTMO doesn't ban them by name, but its risk management rules warn against position sizes substantially larger than your other trades and repeated trading that stacks risk on the same or correlated symbols. A grid that keeps adding to a loser fits that description.

What FTMO actually wants to see

Reading between the lines of every rule update over 3 years, FTMO is optimising for one thing: traders who'll still be profitable 6 months later.

What this means for you:

• Use stops on every trade (even if not mandatory)
• Risk 0.5-1% per trade (your max daily loss is 5% on the 2-Step, so five 1% losers = bust)
• Spread profit across 5-10 days minimum before requesting payout
• Keep position sizes in line with your other trades, no one oversized bet
• Keep trade duration consistent, don't mix 10-second scalps with multi-day swings

The realistic challenge path

This is a realistic path through the 2-Step:

1. Pre-challenge: 4-6 weeks of demo or small live trading on the same setup you'll use. Log 100+ trades. Identify your real win rate.
2. Challenge week 1-2: Trade 1-2 setups only, 0.5% risk per trade. Aim for 3-5% profit slowly.
3. Challenge week 3+: If on track, drop risk to 0.25% to lock in. Hit 10% target by day 15-20, with at least 4 Trading Days logged.
4. Verification: Same setups, 0.5% risk, target 5%, again at least 4 Trading Days.
5. Funded month 1: Risk 0.5%, aim for 3-4% profit spread across 8+ days.
6. First Reward: You can request it from the 14th day after your first trade on the account. The 2-Step pays 80%, rising to 90% through the Scaling Plan (4 months, at least 10% net profit and at least 2 processed Rewards in that period) or the Premium Programme.

What are the FTMO Futures rules?

FTMO Futures is a separate product with its own rulebook, set in dollars rather than percentages. The Evaluation figures below are from FTMO's official Futures Trading Objectives & Rules page, checked on 28 September 2026.

• Trading day: 6:00 p.m. ET to 4:10 p.m. ET the next calendar day
• Max drawdown: trails your highest end-of-day balance and only rises. Once it reaches the initial capital it locks there for the rest of the Evaluation
• Consistency rule: your Best Day cannot be more than 40% (Growth) or 50% (Pro) of total profit. Not a breach, you keep trading until it is
• Contracts: ten Micro contracts count as one Standard or Mini contract
• Sim-Funded Account: no profit target and no consistency rule. FTMO says you keep up to 90% of simulated profits

How to track FTMO compliance

The single most useful piece of admin: a daily floor + equity tracker that updates after every trade. Most traders find out they breached the 5% daily loss only after the email arrives.

RB Trading Pro Journal has a built-in FTMO compliance widget, your daily floor, current equity, distance to max loss, and consistency rule status all on the dashboard. Plug your account in once, never breach a rule by accident again. Risk-free for 30 days.

TL;DR

Pass the rules and you pass the challenge. Most failures aren't because the strategy didn't work, it's because a daily floor calculation was wrong on a Tuesday afternoon.

FAQ

What is the FTMO maximum daily loss? 5% of initial capital on the 2-Step and 3% on the 1-Step. FTMO subtracts it from your balance at 00:00 CE(S)T each day, and your equity, open trades included, cannot drop below that figure.

Is the FTMO maximum loss static or trailing? Static on the 2-Step: 10% of initial capital, so $90,000 on a $100K account. On the 1-Step it is an end-of-day trailing 10% that only rises and resets to 90% of initial capital when a Reward is withdrawn.

How many minimum trading days does FTMO require? 4 Trading Days in each phase of the 2-Step, with no minimum on the FTMO Account. The 1-Step has no minimum trading days rule, but the Best Day rule means you need at least 2 profitable days to pass.

What is the FTMO Best Day rule? On the 1-Step, your Best Day cannot be more than 50% of your Positive Days' Profit, the sum of closed P&L from all profitable days. It is not a breach: you keep trading until the Best Day is 50% or less.

Can I trade news on FTMO? Yes during the Challenge and Verification. On a Standard FTMO Account you cannot open or close trades on targeted instruments from 2 minutes before to 2 minutes after selected releases. Swing accounts have no news restriction.

Can I hold trades over the weekend on FTMO? Yes during the Evaluation, on any account type. On a Standard FTMO Account you must close positions before the weekend, while Swing accounts can hold overnight and over the weekend.

What profit split does FTMO pay? The 2-Step pays 80%, rising to 90% through the Scaling Plan or the Premium Programme. The 1-Step pays 90%. You can request a Reward from the 14th day after your first trade on the account.

What are the FTMO Futures rules? Profit targets of $3,000, $6,000 or $9,000 on 50K, 100K and 150K accounts, an end-of-day trailing max drawdown, and a consistency rule of 40% (Growth) or 50% (Pro). Pro accounts also carry a hard daily loss limit in the Evaluation.

Trading a funded account? The journal has a page for your firm, with its exact rules tracked live: FTMO trading journal.