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To promote consistent trading behavior and fair payouts, NextGen Funding applies a Profit Distribution Rule on funded accounts.

Your most profitable trading day must not exceed 40% of your total accumulated profit at the time of the payout request.

If one trading day exceeds this limit, you may continue trading and generate additional profit until no single day represents more than 40% of your total profit.

This rule helps ensure sustainable trading behavior and applies only to funded accounts.

Example of the Profit Distribution Rule

A trader makes a total profit of $1,000 on their funded account.

Their most profitable day (“Best Day”) generated $500.

Since $500 represents 50% of the total profit, it exceeds the allowed 40% limit, therefore the trader cannot request a payout yet.

The trader continues trading and earns an additional $300, bringing the total profit to $1,300.

Now, the Best Day ($500) represents approximately 38.5% of the total profit.

As the Best Day no longer exceeds 40% of the total accumulated profit, the trader is now eligible to request a payout.

News trading is permitted only in the Standard Challenge during Phase 1 and Phase 2.

For Funded Standard Challenge accounts, as well as Ace and Rapid Challenges/Funded, trading during high-impact news events is strictly prohibited.

News Trading Restriction Window

No trade activity is permitted from 2 minutes before until 2 minutes after a high-impact news release.

During this restricted window:

• No new trades may be opened.
• No existing trades may be closed.
• No positions may be partially closed.
• No positions may be closed manually.
• No positions may be closed automatically by an Expert Advisor (EA).
• No positions may be closed by Take Profit (TP).
• No positions may be closed by Stop Loss (SL).
• No pending orders may be triggered.
• No market orders may be executed.

Any trade that opens or closes during the restricted news window, regardless of the reason or execution method, will be considered a violation.

This includes trades that were opened hours or days before the news event. If a position is closed during the restricted window, whether by manual action, Stop Loss, Take Profit, EA, or any other automated process, it will be treated as a news trading violation.

You may hold positions that were opened before the restricted window, provided they do not close during the restricted period.

Any violation in the Funded Standard Challenge, Ace Challenge/Funded, or Rapid Challenge/Funded will result in the account being breached and closed immediately.

Only high-impact (red folder) news events are restricted. Low-impact and medium-impact news events may be traded normally.

High-Impact News Events & Affected Instruments

Important Notice

Regardless of challenge type, traders must not intentionally attempt to exploit market conditions surrounding high-impact news announcements.

Trading activity is monitored, and transactions that demonstrate deliberate news exploitation may be reviewed under NextGen Funding’s prohibited trading practices.

It is each trader’s responsibility to monitor the economic calendar and be aware of upcoming high-impact events. If you trade restricted instruments during these events, your account will be breached regardless of whether you were aware of the news. We recommend checking the economic calendar daily and setting alerts to avoid violations.

Yes, Expert Advisors (EAs) are permitted for trading.

You are allowed to hold positions overnight and over the weekend; however, swaps will apply.

For our Assessments, we charge $3 per lot exclusively for FX pairs and Metals.

We offer raw spreads starting from as low as 0.1 pips, giving our traders access to some of the most competitive trading conditions available

NextGen Funding offers different leverage depending on the asset class traded. Some instruments use fixed leverage, while others operate under a dynamic leverage system based on the trader’s total open lot exposure.

What is Dynamic Leverage?

NextGen Funding applies a dynamic leverage system based on the trader’s total open lot exposure.

This means that as the total open lot size increases, the available leverage is gradually reduced. This helps protect traders from overexposure, reduces excessive risk-taking, and encourages better risk management across all account sizes.

Forex Dynamic Leverage

Metals, Futures & XAUUSD Dynamic Leverage — Standard & Rapid Challenges

Metals, Futures & XAUUSD Dynamic Leverage — Ace Challenge

Indices Dynamic Leverage

Crypto Dynamic Leverage

This dynamic leverage system is implemented to reduce excessive risk, prevent overexposure, and support more consistent and responsible trading behavior.

Maximum drawdown is the maximum your account can drawdown before you would hard breach your account. When you open the account, your Maximum Drawdown is set at a defined % of your starting balance. This % is static and does not trail.

The Daily Loss Limit is the most your account can lose in a single day before breaching. It resets daily at 5 PM EST, based on the previous day’s balance.

Example (with a 5% Daily Loss Limit):

Day 1 End (5 PM EST): Your account balance is $100,000.

Day 2 Daily Loss Limit: You cannot let your equity drop below $95,000 (5% of $100,000).

If your balance grows: Let’s say during Day 2, your floating profits increase by $5,000, making your equity $105,000.

• Your Daily Loss Limit is still based on Day 1’s balance ($100,000).
• If your equity drops to $95,000, you breach the account, even though your peak equity was higher.

The key point: The loss limit resets daily at 5 PM EST and is based on the previous day’s balance, not your highest equity.

Let’s say your Daily Loss Limit is 5%, and your previous day’s balance (5 PM EST) was $103,000.

Example:

Day 1 End (5 PM EST) → Your balance is $103,000.

Day 2 Daily Loss Limit → You cannot let your equity drop below $97,850 (5% of $103,000).

During the day:

• If your floating profit increases to $108,000, your loss limit still remains at $97,850.
• If your equity drops below $97,850, you breach the account.

Yes, to keep your account active, you must log in and execute at least one trade of a minimum of 0.01 lots every 90 days. Accounts that remain inactive for over 90 days will be classified as inactive, resulting in the forfeiture of challenge fees, simulated profits, and any pending payouts. This policy encourages active trading.

Traders are strictly prohibited from engaging in the following activities:

1. Exploiting Market or System Inefficiencies:
   Arbitrage trading (including hedge arbitrage, reverse arbitrage, latency arbitrage, or price discrepancy exploitation).
   Trading based on system errors, price feed delays, display errors, or external/slow data feeds.
   Using strategies that manipulate overnight rollover price feeds.
2. Unfair Trading Strategies & Manipulation:
   High-frequency trading (HFT), including executing trades within a few seconds to exploit price movements.
   Tick scalping.
   Bracketing orders around high-impact news events.
   Engaging in gap trading to exploit price gaps.
   One-sided betting or overleveraging trades that pose excessive financial risk.
   Trading methods that contradict normal forex or financial market practices.
   Passing a Challenge using only one or two trades, or by splitting a single trading idea into multiple positions, is prohibited. Multiple positions opened on the same instrument in the same direction and closed within one minute may be considered a single trade when assessing trading consistency and Challenge completion requirements.
3. Prohibition of Gambling Practices:
   Engaging in inappropriate risk management, such as gambling, “all-in” trading, or excessively leveraging positions.
   Trading activity that resembles gambling, such as consistently placing trades prior to news releases or other binary events.
   Excessive risk-taking, defined by the percentage of an account risked in a single trade or across a series of trades.
   An “all-in” trade, which involves committing all or a substantial portion of available capital or margin to a single trade.
   Improper use of leverage, where a trader risks a significant portion of their account in one trade or across a series of one-directional trades.
4. Coordinated or Third-Party Trading Activities:
   Copying trades from others or coordinating trades with other accounts.
   Reverse trading or group hedging within NGF accounts or accounts held with other entities.
   Trading on behalf of others, account sharing, or reselling an account.
5. Unauthorized Use of Technology or Automation:
   Using software, AI, bots, or mass data entry methods to manipulate or gain an unfair advantage.
6. Violating NGF’s Trading & Platform Rules:
   Circumventing geographical or technical restrictions.
   Executing trades that contradict the terms and conditions of the trading platform or client portal.
   Performing any activity that NGF deems uncommercial, market-manipulating, or non-viable as a trading strategy.
   Manipulating NGF systems manually or with automated tools in ways that deviate from normal intended use.
7. Fraudulent or Unauthorized Account Use:
   Trading on an account without proper legal authorization.
   Providing false, incomplete, outdated, or misleading information to conceal identity or the origin of funds
   Engaging in any of these prohibited strategies may result in termination from the program and disqualification from receiving a funded account.

The Company reserves the right to review trading activities for compliance and block any Trader from participation at its discretion.

The Maximum Floating Loss Limit is a risk management rule that applies to $50,000, $100,000, and $200,000 Funded Accounts only.

This rule limits the amount of floating (unrealized) loss that can be accumulated on a single trading instrument. The limit is set at 2% of the account size per asset and is monitored while positions remain open.

If multiple positions are open on the same asset, their combined floating loss will be calculated together when determining whether the limit has been reached.

What happens if the limit is reached?

First Violation (Soft Breach)

• All open positions on the affected asset will be automatically closed.
• A warning email will be sent to the trader.
• The Funded Account will remain active and trading may continue.

Second Violation

• If the Maximum Floating Loss Limit is triggered again on the same Funded Account, the account will be considered breached and terminated.

Example:

A trader with a $100,000 Funded Account has a Maximum Floating Loss Limit of 2% per asset. If the combined floating loss on XAUUSD reaches $2,000 while positions remain open, the rule will be triggered.

On the first occurrence, the open positions will be closed automatically and a warning email will be issued. If the rule is triggered a second time, the Funded Account will be breached.

Please note: The Maximum Floating Loss Limit is monitored separately for each asset. Profits or losses on other instruments do not affect the calculation of the limit.