FTMO Rules Explained (2026): Daily Loss, Drawdown, News & Payouts

Overview: 1-Step, 2-Step and the FTMO Account

FTMO sells two evaluation paths. The 2-Step is the classic version: an FTMO Challenge with a 10% profit target, then a Verification with a 5% target, then the funded FTMO Account. The 1-Step is one phase with a 10% target and no Verification. Both have unlimited time. The 2-Step needs at least 4 trading days (a day with at least one position opened, measured 00:00 to 23:59 CE(S)T); the 1-Step has no minimum.

Sizes run from 10K to 200K. A third-party price check in October 2026 listed the 50K 2-Step at 345 EUR and the 50K 1-Step at 319 EUR; FTMO does not print prices on its rules pages, so treat those as list prices and check the order form. The default reward split on the 2-Step is 80%, rising to 90% with the Scaling Plan; the 1-Step pays 90% from the first reward.

The rules below are what FTMO calls Trading Objectives. They apply during the evaluation and, with a few changes, on the funded account. Everything is measured in the account currency against the Initial Simulated Capital (ISC), which is your starting balance.

Rules that end the account

Two rules close an FTMO account the moment they are touched: Maximum Daily Loss and Maximum Loss. Both count floating P&L, swaps and commissions, so an open trade can breach you before you close anything.

Daily loss

2-Step: 5% of ISC ($5,000 on $100K). 1-Step: 3% of ISC ($3,000 on $100K). The limit is recalculated at 00:00 CE(S)T from that day's starting balance, so a day that starts at $102,000 on a 2-Step can fall to $97,000, not $95,000. Includes open positions.

Max loss

2-Step: 10% of ISC, static. The floor is $90,000 on $100K and never moves. 1-Step: 10% of ISC, end-of-day trailing. The floor sits 10% below your highest 00:00 CE(S)T balance (or the ISC if higher), updates once a day and can only rise. After a reward withdrawal on a funded 1-Step account the first-day floor resets to 90% of ISC.

Open risk

No separate open-risk cap. Your only limits are the daily and max loss floors above, both checked against equity.

News

Challenge and Verification: no restriction. Funded Standard account: no order execution 2 minutes before or after selected high-impact news on the affected instruments (third-party verified; FTMO's own page confirms the restriction exists only on Standard funded accounts). Swing accounts have no news rule.

Weekend/overnight

Challenge and Verification: hold freely. Funded Standard account: positions must be closed before market breaks longer than 2 hours, which means weekends; weekday overnight holds are fine. Swing accounts can hold through weekends.

Consistency

Not a breach. Best Day must not exceed 50% of total profit (accounts ordered on or after October 12, 2026; 1-Step from October 5). Older accounts use the legacy version: 50% of Positive Days' Profit. The FTMO Instant account uses 30%.

Other

All positions must be closed for the profit target to count. A trading day is counted from the open of a position, not the close. Forbidden practices under clause 7.3 of the terms still apply to every account type.

Rules that block payouts

FTMO's consistency rule is the one that keeps a passed account from paying. It never closes the account; it raises what you need.

Best Day over 50%. If your best day is $6,000 and your total profit is $10,000, your best day is 60% and you cannot pass or withdraw until total profit reaches $12,000. FTMO's own example.
Legacy accounts measure the best day against Positive Days' Profit (losing days excluded), which is slightly easier to hit than the new total-profit base.
First reward from day 14 after the first trade on the funded account, then on request (third-party verified). Rewards are paid on closed profit, so leave nothing open on request day.
1-Step funded floor after a withdrawal: the end-of-day trailing floor resets to 90% of ISC on the new cycle. A large withdrawal plus a bad first day can breach the new account faster than you expect.
Standard account news and weekend rules only start once you are funded. Profits earned by breaking them are deducted; repeat offenses can end the account.

Easy to miss

Midnight is Prague time. 00:00 CE(S)T is 5pm Central (6pm during US daylight saving gaps). A trade opened at 4:30pm CT runs into a new daily limit half an hour later.
The daily limit follows yesterday's close, not your start balance. On a 2-Step 100K account that ends a day at $97,000, tomorrow's floor is $92,000, which is only $2,000 above the static $90,000 max loss.
The 1-Step floor updates once a day but is checked every tick. Your highest midnight balance sets it; intraday highs do not count, so a big winning day gives no extra room until midnight.
Floating losses breach. A position down 5.1% on a 2-Step account breaches even if it would have recovered.
Swaps and commissions count toward both loss limits. Triple swap on Wednesday can push a borderline day over.
Consistency is a moving rule. The base changed in October 2026; check which version your account date puts you on.

How to track it

Write down four numbers before each session: today's daily floor (yesterday's 00:00 CE(S)T balance minus 5% or 3% of ISC), the max-loss floor ($90,000 static on a 2-Step 100K, or the 1-Step trailing floor), the room between your current equity and the nearer floor, and your best day as a share of total profit. Update the first two every day at 00:00 CE(S)T, not at your local midnight.

Size each trade against the nearer floor, not against the full daily limit. If you have $1,400 of room and your stop is $800, two trades will do it. Keep a running total of open risk across every position because FTMO checks equity, not closed balance.

Once you are funded on a Standard account, add a news list with a 2-minute block on each side of the events FTMO restricts and close everything before the Friday market break. The drawdown calculator does the floor math for any size, and the consistency rule calculator tells you how much more profit the 50% rule needs.

In Proof

Proof tracks every FTMO rule for you

Set the account to the FTMO preset and Proof keeps the daily floor on the CE(S)T reset, the static or end-of-day trailing max-loss floor, the 50% consistency check and the news block windows in one place, then shows live room left on each.

See how Proof does it

Frequently asked questions

What is the FTMO daily loss limit?

5% of the initial balance on the 2-Step ($5,000 on $100K) and 3% on the 1-Step ($3,000 on $100K). It resets at 00:00 CE(S)T from that day's starting balance and includes open positions, swaps and commissions.

Is FTMO max loss static or trailing?

2-Step: static at 10% below the initial balance ($90,000 on $100K). 1-Step: trailing end-of-day, 10% below your highest 00:00 CE(S)T balance, and it only ever rises.

Does FTMO have a consistency rule?

Yes. Your best day cannot be more than 50% of total profit (accounts from October 2026; older accounts use 50% of positive days' profit). It does not breach the account; it raises the profit you need before passing or withdrawing.

Can I trade news on FTMO?

During the Challenge and Verification, yes. On a funded Standard account there is no order execution 2 minutes before or after restricted high-impact news on the affected instruments. Swing accounts have no news rule.

Can I hold trades over the weekend on FTMO?

In the evaluation, yes. On a funded Standard account you must close before market breaks longer than 2 hours, which means weekends. Swing accounts may hold.

Sources checked October 2026: FTMO: Trading Objectives · FTMO: Introducing the 1-Step FTMO Challenge · FTMO: Swing account type FAQ · FTMO homepage (Standard vs Swing restrictions) · Prop Firm Nerd: FTMO review, checked October 16, 2026 (prices, news window, weekend, payouts)