R-01 — Risk Per Trade & Stop Loss
R-01 is the FairTicks rule that controls how much risk a single trade can take. On account models where R-01 is active, a position must include a valid Stop Loss and the selected stop risk must stay within the allowed limit.
R-01 is a preventive rule. It rejects oversized or unprotected trades before they can damage the account. The goal is to make risk visible before execution.
What does R-01 enforce?
R-01 enforces a maximum risk boundary for a single position. If the account requires Stop Loss, the trade must include one before the position can be opened.
The Stop Loss risk is expressed as a percentage of account capital. FairTicks then translates that risk into logical ticks and a Stop Loss price based on the selected market and contract size.
Account capital: $50,000
Maximum Stop Loss risk: 1%
Maximum allowed risk amount: $50,000 × 1% = $500
The trade must be structured so the Stop Loss risk stays within that boundary.
Which accounts require Stop Loss?
Stop Loss and R-01 are not applied the same way on every FairTicks account model. The account model determines whether Stop Loss is required.
| Account model | Stop Loss required? | R-01 enforced? | Maximum Stop Loss risk |
|---|---|---|---|
| Rapid | No | No required Stop Loss framework | Stop Loss is optional, but if used it must still be valid. |
| Classic | Yes | Yes | Up to 1% of account capital. |
| Discipline / Precision | Yes | Yes | Up to 1% of account capital. |
Rapid gives more freedom because Stop Loss is not required. Classic and Discipline / Precision require Stop Loss structure when opening positions.
R-01 is not a breach
If R-01 rejects a trade, your account has not breached. The position simply does not open because the trade did not satisfy the pre-trade risk rules.
A rejected trade protects the account before exposure is created. A breach happens only when a hard account rule is reached or crossed after account risk actually exists.
How FairTicks calculates Stop Loss risk
FairTicks starts from the Stop Loss percentage and converts it into a maximum risk amount. Then it checks whether the selected contracts and market tick structure fit inside that risk amount.
maximum risk amount = account capital × stop loss percentage
position tick value = selected contracts value
maximum stop ticks = maximum risk amount ÷ position tick value
The platform uses logical ticks to place the Stop Loss boundary. If the selected contract size is too large for the chosen Stop Loss risk, the trade can be rejected.
Contracts and tick value
Your selected contracts determine the position's simulated tick value. Larger contract combinations create larger tick movement and consume more risk per tick.
| Contract | FairTicks value | Meaning for Stop Loss |
|---|---|---|
| NANO | $1 / tick | Smallest standard contract value. |
| MICRO | $5 / tick | Medium contract value. |
| MINI | $10 / tick | Largest standard contract value. |
10 NANO = 10 × $1 = $10 / tick
2 MICRO = 2 × $5 = $10 / tick
1 MINI = 1 × $10 = $10 / tick
Total position tick value = $30 / tick
Worked example — Classic 50K account
Let’s use a Classic 50K Training account where Stop Loss is required.
Account capital: $50,000
Maximum Stop Loss risk: 1%
Maximum risk amount = $50,000 × 1% = $500
Scenario A — trade accepted
Selected contracts create tick value: $20 / tick
Maximum risk amount: $500
Maximum stop distance = $500 ÷ $20 = 25 logical ticks
Requested Stop Loss distance: 20 logical ticks
Potential Stop Loss risk = 20 × $20 = $400
Result: accepted, because $400 is within the $500 risk boundary.
Scenario B — trade rejected
Selected contracts create tick value: $20 / tick
Maximum risk amount: $500
Requested Stop Loss distance: 30 logical ticks
Potential Stop Loss risk = 30 × $20 = $600
Result: rejected, because $600 is above the $500 risk boundary.
Why a Stop Loss can be too tight for selected contracts
Sometimes the selected contracts are too large for the Stop Loss risk selected. If even one logical tick would exceed the allowed risk amount, the trade cannot be structured safely.
Account capital: $25,000
Selected Stop Loss risk: 0.01%
Maximum risk amount: $25,000 × 0.01% = $2.50
Selected contracts create tick value: $10 / tick
One tick already risks $10, which is above the $2.50 budget.
Result: the trade can be rejected. Reduce contract size or choose a wider valid Stop Loss within the allowed limit.
A Stop Loss that is too tight is not always safer. If the selected contracts are too large, the platform may not be able to create a valid logical Stop Loss boundary.
Why Stop Loss matters
A Stop Loss defines the official risk boundary of the position. Without it, FairTicks cannot know how much the trade is intended to risk.
This is why Classic and Discipline / Precision accounts require a Stop Loss before opening a position. It forces the position to have a defined risk limit before exposure is created.
R-01 asks a simple question before the trade opens: “If this Stop Loss is reached, is the trade still inside the account's allowed risk boundary?”
What happens if Stop Loss is missing?
On accounts where Stop Loss is required, the trade is rejected before execution. The position does not open.
Stop loss is required for this account.
To fix this, add a valid Stop Loss before opening the position.
What happens if the Stop Loss is too wide?
If the selected Stop Loss percentage is above the allowed maximum, the trade is rejected.
Stop loss too wide. Maximum allowed is 1%.
To fix this, reduce the Stop Loss risk percentage, reduce contract size, or adjust the trade setup so the position fits inside the rule.
Stop Loss price and logical ticks
After the Stop Loss risk is accepted, FairTicks translates it into logical ticks and a Stop Loss price for the selected market. The exact price depends on:
- The selected market.
- The market's logical tick size.
- The entry price.
- The trade direction: Long or Short.
- The selected contracts.
- The selected Stop Loss risk percentage.
For a Long position, the Stop Loss is below the entry price.
For a Short position, the Stop Loss is above the entry price.
Stop Loss and actual close result
Stop Loss is the official risk boundary selected for the position. If the Stop Loss is triggered, FairTicks closes the position through the platform's Stop Loss process and records the official result.
External charts can help you understand market context, but the FairTicks position history remains the official account record.
Stop Loss is a risk control tool. It does not mean the trade was profitable or safe. It only means the position had a defined loss boundary according to the FairTicks rule system.
Stop Loss and Reverse Trade
If Reverse Trade is available, FairTicks may need to validate the Stop Loss structure before reversing. Reverse Trade can be blocked if the account requires Stop Loss and the position does not have a valid Stop Loss structure.
This prevents the platform from closing one position and attempting to open another direction that does not satisfy the account's risk rules.
Reverse Trade is not a way to bypass R-01. If opening the new direction would violate Stop Loss or risk rules, the reverse action can be blocked.
Common rejection reasons
| Reason | Meaning | How to fix it |
|---|---|---|
| Stop Loss required | The account model requires Stop Loss and none was provided. | Add a valid Stop Loss before opening the position. |
| Stop Loss too wide | The Stop Loss percentage is above the allowed maximum. | Use a Stop Loss within the allowed limit. |
| Stop Loss too tight for selected contracts | The selected contracts are too large for the chosen Stop Loss risk. | Reduce contracts or choose a wider valid Stop Loss within the allowed limit. |
| Invalid Stop Loss percentage | The Stop Loss value is missing, zero, negative, or invalid. | Enter a positive valid Stop Loss percentage. |
| Reverse Stop Loss blocked | The reverse action cannot satisfy the account's Stop Loss rules. | Review the existing position and account risk rules before reversing. |
R-01 vs other risk rules
R-01 is not the same as Daily Loss, Max Loss, or Max Exposure. These rules work together, but they control different things.
| Rule | What it controls | When it acts |
|---|---|---|
| R-01 / Stop Loss | Maximum planned risk on one position. | Before opening the trade. |
| Max Exposure | Total open position size allowed on the account. | Before opening the trade. |
| Daily Loss | How far live equity can fall during the trading day. | While the account is active. |
| Max Loss | How far live equity can fall against the account's Max Loss floor. | While the account is active. |
| Trailing Drawdown | Profit protection where enabled by the account rules. | While the account is active. |
R-01 controls the planned risk of a single trade before entry. Daily Loss, Max Loss, and Trailing Drawdown control account survival after trades and price movement affect live equity.
Common mistakes to avoid
| Mistake | Why it creates problems | Better approach |
|---|---|---|
| Thinking Stop Loss is optional on every account | Classic and Discipline / Precision require Stop Loss. | Check the account model before opening a trade. |
| Using too many contracts with a small Stop Loss risk | One logical tick can exceed the risk budget. | Reduce contract size or adjust the Stop Loss within the allowed range. |
| Confusing rejected trade with breach | A rejected trade did not open and did not breach the account. | Treat rejection as a pre-trade warning. |
| Thinking Rapid has no risk | Rapid may not require Stop Loss, but Daily/Max/Trailing rules can still apply where enabled. | Freedom does not remove account risk. |
| Trying to use Reverse Trade to bypass Stop Loss | Reverse Trade still follows account risk rules. | Make sure the account and position satisfy the required rules. |
Common questions
“What is R-01?”
R-01 is FairTicks' risk-per-trade rule. It checks whether the position has a valid Stop Loss and whether the trade fits inside the allowed risk boundary.
“Is Stop Loss required on Rapid?”
No. Rapid does not require Stop Loss. However, if you choose to use a Stop Loss, it must still be valid.
“Is Stop Loss required on Classic?”
Yes. Classic accounts require Stop Loss when opening positions.
“Is Stop Loss required on Discipline / Precision?”
Yes. Discipline / Precision accounts require Stop Loss when opening positions.
“What is the maximum Stop Loss risk?”
On the current FairTicks rule framework, the maximum Stop Loss risk is up to 1% of account capital for accounts where R-01 is active.
“Why was my trade rejected?”
The most common reasons are missing Stop Loss, Stop Loss too wide, invalid Stop Loss value, or selected contracts too large for the Stop Loss risk selected.
“Does a rejected R-01 trade count as a breach?”
No. The trade is rejected before opening. The account does not breach just because R-01 blocked the entry.
“Can I fix a rejected trade?”
Yes. Add a valid Stop Loss, reduce the Stop Loss risk, reduce selected contracts, or adjust the trade setup so it fits the account's rules.
“Does R-01 replace Daily Loss or Max Loss?”
No. R-01 is a pre-trade rule. Daily Loss and Max Loss are account-level risk rules that can still breach the account if live equity reaches their floors.
“Can a trade with a valid Stop Loss still breach the account?”
Yes. A valid Stop Loss helps control the planned risk of one position, but the account can still breach if live equity reaches a Daily Loss, Max Loss, or Trailing Drawdown floor.
“Does Stop Loss guarantee payout eligibility?”
No. Stop Loss is a trading risk rule. Payout eligibility is checked later and includes separate conditions such as Live account status, funded days, trading days, NP Score, consistency, eligible profit, KYC, no open positions, and wallet validation.
Summary
R-01 is FairTicks' pre-trade risk control rule. It checks whether the position has a valid Stop Loss where required and whether the selected trade fits inside the allowed risk boundary.
Rapid does not require Stop Loss. Classic and Discipline / Precision do. On the current FairTicks framework, the maximum Stop Loss risk for R-01 accounts is up to 1% of account capital.
R-01 protects the account by rejecting trades that are missing a required Stop Loss or that risk too much before the position opens.
R-01 blocks bad risk before it becomes account damage.
If a trade is rejected, review the Stop Loss, contract size, and account rules before trying again.
Trade rejected by Stop Loss or R-01?
Check your account model, selected contracts, Stop Loss percentage, and the rejection message shown in the platform. If something still looks unclear, contact support with your account number and trade preview details.