FundedNext removes the 70% margin rule, marking one of the firm’s more meaningful trading rule adjustments in recent months. The change immediately eliminates a restriction that previously limited margin utilization across funded accounts, while also reversing related penalties from the current trading cycle. For active traders, the update reduces operational friction without altering the firm’s broader approach to risk management.
FundedNext Removes 70% Margin Rule, Clears Existing Violations
Unlike temporary promotional changes or pricing adjustments, this update affects how traders manage open positions on a day-to-day basis. By removing the 70% margin threshold, FundedNext is simplifying its account rules while preserving the controls it considers essential for capital protection.
70% Margin Rule Removed Across All Accounts
Effective immediately, the 70% Margin Rule has been removed from both existing and newly created FundedNext accounts. The firm has also removed the Margin Usage Card from trader dashboards, reflecting that margin utilization will no longer be monitored under the previous framework.
Existing traders who received warnings or violations under the 70% rule during their current cycle will see those records cleared. More importantly, the firm confirmed that profits generated during those periods will remain intact, with no deductions applied.
FundedNext also addressed accounts operating under its 1% Risk and 30% Margin framework. The firm reversed all current-cycle margin penalties and confirmed that traders will retain profits earned despite previous 30% margin violations. However, participants on those account types must still comply with the existing 1% risk requirement.
The 3% Risk Limit Remains in Place
While margin restrictions have been relaxed, FundedNext emphasized that its 3% risk limit continues to apply without modification.
This distinction matters because margin usage and risk exposure are not identical. A trader may use substantial margin while still maintaining controlled position sizing and acceptable downside risk. By shifting attention toward risk rather than a fixed margin threshold, the firm appears to be aligning its rules more closely with actual trading exposure instead of account utilization alone.
The company also continues to encourage traders to maintain professional habits, noting that experienced market participants often operate with conservative margin levels despite having additional capacity available.
Why This Change Matters Operationally
From a practical standpoint, the removal of the 70% margin rule reduces the number of administrative checks traders need to monitor during normal execution. Instead of tracking both risk limits and margin thresholds simultaneously, participants can concentrate primarily on position sizing and overall account exposure.
That simplification can be particularly valuable during periods of heightened market volatility. Traders managing multiple positions or hedging strategies no longer need to worry about unintentionally triggering a separate margin-based restriction while remaining within acceptable risk parameters.
The decision may also reduce confusion among newer funded traders, who sometimes viewed margin limits and drawdown rules as overlapping controls despite serving different purposes.
Reflecting a Broader Shift Toward Simpler Rule Structures
Across the proprietary trading industry, firms have increasingly reviewed account rules that create unnecessary complexity without materially improving risk management. While evaluation models continue to differ, many providers are placing greater emphasis on straightforward trading conditions that traders can understand and follow consistently.
FundedNext’s latest adjustment fits within that broader movement. Rather than adding another layer of restrictions, the firm has removed one while maintaining a clearly defined risk framework. That balance could improve the trading experience without fundamentally changing how capital should have protection.
The decision to restore affected profits also carries an important retention element. Traders who complied with overall account objectives but were penalized under the previous margin rule will not see those earnings reduced, helping rebuild confidence following the policy change.
Conclusion
FundedNext removed the margin limits, but traders should still avoid increasing leverage indiscriminately. The 3% risk limit remains fully enforceable, meaning poor risk management can still result in account violations regardless of available margin.
For traders evaluating FundedNext’s funding programs, the revised framework creates a cleaner rule set while preserving the firm’s core emphasis on disciplined execution. Those already trading with the firm may also appreciate the immediate removal of historical margin violations and the confirmation that previously earned profits remain untouched.
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