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F.A.Q.

A stop-loss is a fundamental risk management tool that helps traders protect their capital and maintain disciplined trading. Without a stop-loss, unexpected market movements could lead to uncontrolled losses, ultimately jeopardizing your account. At Web3 Funded, we require stop-loss orders to ensure responsible trading practices and safeguard both your progress and our capital.

You would violate the stop-loss requirement in the following situations:
 

  • Not setting a stop-loss: Every trade must have a stop-loss in place to limit potential losses. Entering a trade without a stop-loss is a direct violation.

  • Delaying stop-loss placement: Traders must set a stop-loss within 5 minutes of opening a position. Failing to do so within this timeframe results in a breach of the rule.

  • Exceeding the risk limit: The maximum allowable risk per trade is 3% of the initial account balance. If your stop-loss is positioned in a way that risks more than 3% of your balance, it will be considered a violation. The 3% risk threshold is immediately calculated once the stop-loss is set.
     

By adhering to these guidelines, you can trade safely while demonstrating the risk management skills necessary to progress through the Web3 Funded program. 

To make sure your stop-loss is properly registered, you must set it using dedicated ‘TP/SL’ function, either as a standard Stop Loss or a Trailing Stop Loss. Stop-loss orders placed through conditional triggers or limit close orders will not be recognized as valid. If the stop-loss is not configured using the correct method, it won’t be recorded, leading to a rule violation.

Is the stop loss mandatory?

All content on this website is intended solely for educational purposes related to trading in financial markets. It should not be interpreted as specific investment advice, business guidance, an investment opportunity analysis, or any general recommendation regarding the trading of financial instruments. Trading in financial markets involves substantial risk, and it is strongly recommended to only invest what one can afford to lose. Web3 Funded does not offer any investment services as defined in the Capital Market Undertakings Act No. 256/2004 Coll. Please note that all accounts of our clients are demo accounts with fictitious funds and any trading is in a simulated environment only.The information provided is not aimed at individuals in any country or jurisdiction where such distribution or use would violate local laws or regulations. Web3 Funded is not a broker and does not accept any deposits.

 

 

 

 

Web3 Funded P.S.A.

office@web3funded.com
+48 500 593 245
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