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Risk Management and Margin Control: Protect Your Capital

Learn about our margin policies and how we manage risk for sustainable trading.

Written by Support Team

At Impulse World, we believe that effective risk management is the key to long-term success in trading. Our policies are designed to help you protect your capital while maximizing your growth opportunities.

What Is Margin and Why Is It Important?

Margin is the amount of funds you need to open and maintain a position in the market. Understanding and correctly managing margin is crucial to:

  • Avoid over-leveraging

  • Maintain proper risk control

  • Ensure the sustainability of your trading strategy

Our Margin Control Policy

At Impulse World, we have established a clear rule for margin control:

Traders are not allowed to involve more than 10% of the maximum available margin in a single trade or intent on the same asset.

What Does This Mean in Practice?

  • Diversification: This rule encourages you to diversify your trades rather than concentrating all your risk in a single trade.

  • Prevention of over-leveraging: Limits your exposure to a single asset, reducing the risk of significant losses.

  • Consistency: Promotes a more balanced and sustainable approach to your trading.

How to Calculate the Margin Used?

To make sure you comply with our policy, it's important that you know how to calculate the margin used in your trades. Here is the formula:

Margin = (Lot Size x Contract Size x USD Quote) / Leverage

Example: For a EUR/USD trade with 5 lots:

5 (Lot Size) x 100,000 (Contract Size) x 1.09237 (USD Quote) / Leverage ≈ 5,461.85 (Margin Used)

This margin of 5,461.85 is the amount that must not exceed 10% of your maximum available margin.

How Do You Perform the Corresponding Calculation to Avoid Breaching the Margin Control Policy?

To ensure compliance with the Margin Control Policy, it is essential that no trade or intent use more than 10% of the available margin. This requires performing a prior calculation that correctly assesses the proportion of margin that will be committed, based on the nature of the trade or intent to be executed.

The calculation methodology will vary depending on whether it involves a trade or intent on a single financial instrument or on several instruments simultaneously. The two main scenarios are described below:

  1. Calculation of the maximum lot size allowed on a single financial instrument

    When you wish to trade a single instrument, a calculation must be performed to determine the maximum lot size that can be opened without breaching the 10% limit on available margin.

  2. Calculation of the margin used in intents made up of multiple instruments

    In situations where an intent involves two or more instruments simultaneously related to the same underlying asset (for example, EUR/USD and XAU/USD), an aggregate calculation must be performed of the margin used by all the instruments involved. This makes it possible to verify that, together, the intent does not exceed the established 10% limit.


1. Calculation of the Maximum Lot Size Allowed on the Same Instrument

General Formula:

Maximum lot size allowed = 10% of available margin / (USD Quote * Contract Size)

Required Parameters:

  • Account size

  • Instrument to be traded

  • Leverage of the instrument

Available margin:

Available margin = Account size * Leverage of the instrument

Maximum margin allowed: Maximum margin allowed = 10% of available margin

Contract size:

Defined according to the instrument

USD Quote:

Price of the instrument quoted in USD at the time of trading

Practical Example:

Account size: $10,000.00

Instrument traded: XAU/USD

Leverage: 25 Available margin: 10,000 * 25 = $250,000

Maximum margin allowed: 10% of 250,000 = $25,000

Contract size: 100 USD

Quote: $2,707.00

Maximum lot size allowed: 25,000 / (2,707 * 100) = 0.09 lots

Based on this calculation, you cannot exceed 0.09 lots on XAU/USD, since doing so would mean exceeding 10% of the available margin, thereby breaching the Margin Control Policy.

If 0.30 lots are opened, you would be trading outside the established limit. If that trade generates a net profit, at the time of requesting a withdrawal, a proportional adjustment will be applied to that profit. The purpose of this adjustment is to reflect the result that would have been obtained had the 0.09-lot limit been respected.

In practice, the estimated profit corresponding to the allowed volume (0.09 lots) will be determined, and the portion of profit attributable to the excess lot size (that is, the additional 0.21 lots) will be excluded. This exclusion will be applied to the net profit, ensuring that the amount eligible for withdrawal is consistent with compliance with the operating policies.


2. Calculation of the Margin Used for 2 or More Instruments Simultaneously

When trading more than one instrument, it is necessary to calculate the total margin used and check whether it exceeds 10% of the available margin.

General Formula:

Margin used = (Lot Size * Contract Size * USD Quote) / Leverage of the instrument

Margin used in % = (Margin used / Account size) * 100

Practical Example:

Instrument 1: XAU/USD

Lot Size: 0.05

Contract Size: 100 USD

Quote: $2,707.00

Leverage: 25

Margin used: (0.05 * 100 * 2,707) / 25 = $541.40 Margin used in %: (541.40 / 10,000) * 100 = 5.41%

Instrument 2: EUR/USD

Lot Size: 0.70

Contract Size: 100,000 USD

Quote: $1.055

Leverage: 100

Margin used: (0.70 * 100,000 * 1.055) / 100 = $738.50

Margin used in %: (738.50 / 10,000) * 100 = 7.38% Total margin used: 5.41% + 7.38% = 12.79% (Exceeds the 10% allowed)

In this case, the allowed margin limit has been exceeded by 2.79%, which constitutes a breach of the Margin Control Policy.

As a consequence, at the time of requesting a withdrawal, a proportional adjustment will be applied to the profit generated. This adjustment will be calculated based on the relationship between the maximum margin allowed and the margin actually used, thereby reflecting the level of non-compliance.

The identified excess will result in a proportional exclusion of the profit obtained, which will be adjusted against the account's net profit. This ensures that the withdrawn earnings are aligned with regulatory compliance and do not include returns obtained outside the limits established by the policy.


Why Is It Important to Take Margin Into Account?

Taking margin into account is essential for effective risk management. It allows traders to understand their true exposure in the market and prevents taking on excessive risk, ensuring the long-term sustainability and soundness of trading strategies. Failing to comply with the margin policy leads to a review by the risk department and may result in necessary adjustments.

Important:

  • We define "same intent" as any series of transactions on the same financial asset that are executed in parallel during a given period.

  • We base the maximum available margin on the account's initial balance, since this is more practical for the trader when performing the required calculations.

  • In cases where, due to the reduced size of the account, the calculation of the maximum lot size allowed results in less than 0.01 (the minimum lot size allowed on the platform), an exception will apply and trading with 0.01 as the maximum lot size will be permitted. For example, on $1,000 accounts, the calculation of the maximum lot size allowed for XAU/USD may result in less than 0.01, which would technically prevent trading that instrument without exceeding 10% of the margin; in these specific cases, opening 0.01 lots will still be permitted.

Consistency Policy During the Funded Phase

What Is the Objective of This Policy?

The Consistency Policy During the Funded Phase aims to ensure that our traders maintain a coherent and stable trading approach over time. This policy seeks to encourage a balanced and sustainable trading approach, ensuring that profits reflect skill, strategy, and discipline, rather than isolated exceptional results or strokes of luck. The implementation of this policy responds to the need to evaluate performance in a more qualitative way, focusing on the distribution of daily profits.

What Does This Policy Consist Of?

On any given trading day, a trader may not have a net profit that exceeds the multiplier corresponding to their account size, applied to the average of their best profit days (not counting negative days). The multiplier and the number of reference days vary according to the capital managed:

Account Size

Multiplier

Reference Days

1K to 10K

3x

10 best days

30K to 60K

2x

10 best days

100K

1.5x

10 best days

300K

1.25x

15 best days

600K and above

1.2x

20 best days

The progressive approach to the multiplier and the number of days considered for calculating the average in the Consistency Policy is intended to adapt the level of demand based on the account size. In this way, as the allocated capital increases, so does the level of demand, reflecting a greater degree of responsibility and professionalism expected in trading activity. This approach allows smaller accounts to trade with greater flexibility, while larger-capital accounts require stronger consistency, promoting risk management that is more stable, controlled, and aligned with professional standards.

How Is This Limit Calculated?

  • The best days in terms of net profit are taken according to your account size (10, 15, or 20 days per the table above), calculated based on the closing date of the trades (negative days are not counted).

  • The average of those days is calculated (10, 15, or 20 days per the table above).

  • That average is multiplied by the multiplier that corresponds to your account size (3x, 2x, 1.5x, 1.25x, or 1.20x). That is the maximum allowed profit for a single day.

  • If any given day exceeds that limit, the net profit for that day will be excluded so that it stays within the threshold, which will also impact the total net profit withdrawn.

General Summary

This policy applies only during the funded phase and only when you request a withdrawal.

The goal is for your results to come from consistent, sustainable trading, and not just from one or two atypical days with very high profits.

  • We review your profit days within the withdrawal period.

  • We calculate the average of your best profit days according to your account size (10, 15, or 20 days per the multiplier table). If you have fewer days than the required minimum, they are filled in with $0 days.

  • No single day can exceed the multiplier corresponding to your account (3x, 2x, 1.5x, 1.25x, or 1.2x) applied to that average. If a day exceeds it, the excess for that day is not considered in the calculation of your withdrawal.

    This is how we protect the stability of the funded program while also rewarding traders who trade with discipline and consistency.

In Simple Terms

If, during the funded phase, you have several good days and one exaggeratedly large one, we will not pay you as if your entire result depended solely on that day.

We look at your best days, calculate an average, and set a healthy limit for how much each day can contribute to the withdrawal.

If a day goes over that limit, we don't lose that whole day — only the portion considered "excessive" is adjusted for this withdrawal.

You will always have two paths:

  • Withdraw now, accepting the consistency adjustment.

  • Keep trading for more days, so your result becomes more balanced and, on the next withdrawal, the adjustment is smaller or does not exist.


Example 1 – Consistent Trader (Does NOT Breach the Policy):

Net Profit requested: $2,900

Average of best days: $9,615 / 10 = $961.5

Daily profit limit: $961.5 * 1.5 = $1,442.25

Daily results:

Day

Profit

Limit

Adjusted?

Consistency Adjustment

1

1,250.00

1,442.25

No

0

2

-1,350.00

-

-

-

3

-800.00

-

-

-

4

650.00

1,442.25

No

0

5

745.00

1,442.25

No

0

6

375.00

1,442.25

No

0

7

-1,800.00

-

-

-

8

-765.00

-

-

-

9

665.00

1,442.25

No

0

10

980.00

1,442.25

No

0

11

850.00

1,442.25

No

0

12

1,400.00

1,442.25

No

0

13

1,300.00

1,442.25

No

0

14

-2,000.00

-

-

-

15

1,400.00

1,442.25

No

0

Result: The trader has demonstrated consistency and a healthy distribution of profits. No day exceeds the $1,442.25 limit. Therefore, no consistency adjustments are made, and the trader can withdraw the full net profit requested.


Example 2 – NOT a Consistent Trader (Breaches the Policy):

Net Profit requested: $2,900

Average of best days: $9,615 / 10 = $961.5

Daily profit limit: $961.5 * 1.5 = $1,442.25

Daily results:

Day

Profit

Limit

Adjusted?

Consistency Adjustment

1

1,750.00

1,442.25

Yes

307.75

2

-1,350.00

-

-

-

3

-800.00

-

-

-

4

150.00

1,442.25

No

0

5

745.00

1,442.25

No

0

6

375.00

1,442.25

No

0

7

-1,800.00

-

-

-

8

-765.00

-

-

-

9

665.00

1,442.25

No

0

10

980.00

1,442.25

No

0

11

850.00

1,442.25

No

0

12

2,200.00

1,442.25

Yes

757.75

13

500.00

1,442.25

No

0

14

-2,000.00

-

-

-

15

1,400.00

1,442.25

No

0

Result: In this case, Day 1 and Day 12 breach the consistency policy, so a consistency adjustment must be applied to the profits from those days.

Adjustment:

Day

Net Profit

Daily Profit Limit

Consistency Adjustment Applied

Day 1

$1,750.00

$1,442.25

$1,750 - $1,442.25 = $307.75

Day 12

$2,200.00

$1,442.25

$2,200 - $1,442.25 = $757.75

Consistency Adjustment Summary:

Total Consistency Adjustment

$1,065.50

Previous Net Profit

$2,900.00

Final Profit

$1,834.50

Trader's options:

  • Withdraw now with the consistency adjustments applied.

  • Keep trading to avoid consistency adjustments on the next withdrawal.

What Happens if I Don't Have the Reference Days With a Profit or at Break-Even?

The consistency policy is based on the average of your best trading days according to your account size (10, 15, or 20 days), not counting negative days. If, at the time of requesting the withdrawal, you do not have the required number of days in profit or at break-even, the missing days will be counted with a net profit of $0.


Example 3 – Complies With the Policy With Fewer Than 10 Profit Days:

Net Profit requested: $4,000

Average of best days: $10,415/10 = $1,041.5

Daily profit limit: $1,041.5 * 1.5 = $1,562.25

Daily results:

Day

Profit

Limit

Adjusted?

Consistency Adjustment

1

1,450.00

1,562.25

No

0

2

-1,350.00

-

-

-

3

-800.00

-

-

-

4

-500.00

-

-

-

5

1,300.00

1,562.25

No

0

6

1,110.00

1,562.25

No

0

7

-1,800.00

-

-

-

8

-765.00

-

-

-

9

1,150.00

1,562.25

No

0

10

1,315.00

1,562.25

No

0

11

1,200.00

1,562.25

No

0

12

1,390.00

1,562.25

No

0

13

1,500.00

1,562.25

No

0

14

-1,000.00

-

-

-

15

-200.00

-

-

-

Result: The trader had 8 profit days. The average was completed with 2 days at $0, and the daily limit was not exceeded, so no consistency adjustments apply. The policy is met.


Example 4 – Breaches the Policy With Fewer Than 10 Profit Days:

Net Profit requested: $4,000

Average of best days: $10,415/10 = $1,041.5

Daily profit limit: $1,041.5 * 1.5 = $1,562.25

Daily results:

Day

Profit

Limit

Adjusted?

Consistency Adjustment

1

250.00

1,562.25

No

0

2

-1,350.00

-

-

-

3

-800.00

-

-

-

4

-500.00

-

-

-

5

3,000.00

1,562.25

Yes

1,437.75

6

610.00

1,562.25

No

0

7

-1,800.00

-

-

-

8

-765.00

-

-

-

9

650.00

1,562.25

No

0

10

1,315.00

1,562.25

No

0

11

1,200.00

1,562.25

No

0

12

1,390.00

1,562.25

No

0

13

2,000.00

1,562.25

Yes

437.75

14

-1,000.00

-

-

-

15

-200.00

-

-

-

Result: The trader had 8 profit days, and the average was completed with 2 days at $0.

The policy was breached on Day 5 and Day 13, so consistency adjustments apply.

Adjustment:

Day

Net Profit

Daily Profit Limit

Consistency Adjustment Applied

Day 5

$3,000.00

$1,562.25

$3,000 - $1,562.25 = $1,437.75

Day 13

$2,000.00

$1,562.25

$2,000 - $1,562.25 = $437.75

Consistency Adjustment Summary:

Total Consistency Adjustment

$1,875.50

Previous Net Profit

$4,000.00

Final Profit

$2,124.50

Trader's options:

  • Withdraw now with the consistency adjustments applied.

  • Keep trading to avoid consistency adjustments on the next withdrawal.


Additional Important Points

  • Time at which a trading day is determined: For the purposes of calculating daily profits, days are defined according to UTC time (Coordinated Universal Time), starting at 00:00 UTC. Establishing a universal time standard allows for uniformity in evaluating the trading activity of all traders, regardless of their geographic location, ensuring that everyone is governed by the same parameters.

  • Measuring consistency per withdrawal period: The consistency evaluation is carried out individually for each withdrawal request period. This means that the calculation of the average of the best days according to your account size (10, 15, or 20 days) and the verification of policy compliance apply exclusively to the set of trading days that make up that period. With each new request, the corresponding analysis is performed again.

  • Display of the daily limit in the Analyzer: To make compliance with this policy easier, the allowed daily net profit limit will be available in each trader's Analyzer. This will allow you to know precisely how much you can generate per day without exceeding the established consistency threshold, promoting more mindful and effective control of your trading activity.

  • The update to the number of days considered for calculating the average and to the multiplier applied in the Consistency Policy will take effect starting April 1, 2026. Until that date, the current conditions will remain in effect, under which the daily profit limit is calculated based on the average of your 10 best profit days multiplied by 1.5. From the indicated date onward, all accounts will be subject to the new structure defined based on account size.

We know that achieving consistent trading requires focus, discipline, and sustained effort. This policy has been designed precisely to value that type of performance, promoting a balanced, responsible trading approach oriented toward sustainable results. Its application seeks to ensure that profits reflect trading skill and do not depend on isolated results.


Consequences of Breaching the Margin and Consistency Policies

Failure to comply with these policies can lead to:

  • Review by the risk department

  • Possible adjustments to your trades

  • In extreme cases, restrictions on your account

Tips for Effective Risk Management

  • Diversify your trades: Don't put all your eggs in one basket.

  • Use stop losses: Limit your potential losses on each trade.

  • Keep a trading journal: Analyze your trades to improve your risk management.

  • Keep educating yourself: The market evolves, and your knowledge should too.

Conclusion

Consistency and margin control are fundamental to your success as a trader. By following these policies and tips, you not only protect your capital, but you also position yourself for sustainable growth in your trading career.


Would you like to learn more about how to apply these strategies in your day-to-day trading? Feel free to contact our support team for personalized guidance via email at [email protected] or through the live chat located at the bottom right of the screen. We look forward to hearing from you!

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