Getting access to trading capital can be tough, but Instant Funding offers a solution with their Two-Phase Challenge. This challenge is designed to test a trader's skills and discipline, giving them a chance to manage larger sums of money. In this article, we'll break down everything you need to know about Instant Funding’s Two-Phase Challenge, including profit targets, drawdown limits, and more.

Profit Targets :-

To pass the challenge, traders must reach specific profit targets in both phases.

Phase 1 Profit Target

In the first phase, the goal is to achieve an 8% profit on the initial account balance. Reaching this target shows that the trader can make steady profits while following the rules.

Phase 2 Profit Target

If the trader passes Phase 1, they move on to Phase 2, where the profit target is lowered to 5%. This reflects the increased challenge of staying consistent over a longer period.

Daily Drawdown :-

The daily drawdown limit is 5% in both phases. This means that traders cannot lose more than 5% of their account balance in a single day. This limit is calculated based on whichever is higher—your account balance or equity—at midnight. This rule helps protect both the trader and the funding provider from big losses.

Maximum Drawdown :-

Besides the daily limit, there’s also a maximum drawdown limit of 10%. The 10% maximum drawdown is static, which means it stays fixed at 10% of the initial balance throughout both phases. This helps keep traders within safe limits.

Trading Days :-

Minimum Trading Days

One unique feature of the Two-Phase Challenge is that there’s no minimum number of trading days required. Traders can take as much time as they need to complete each phase.

Maximum Trading Days

Similarly, there’s no deadline to pass the challenge. This gives traders the freedom to trade at their own pace without feeling rushed.

Profit Split :-

At first, traders get to keep 80% of the profits they make. This is a generous share that ensures successful traders are rewarded well for their efforts. Over time, if a trader continues to perform well, their profit share can increase to 90%, giving them even more of their earnings.

Payout Frequency :-

Payouts happen every 14 days. After the first payout, traders can choose to receive their profits every 7 days, giving them quicker access to their earnings.

Leverage and Trading Options :-

Leverage for Different Asset Classes

The leverage options vary depending on the asset: Currencies: Up to 1:100 Commodities: Up to 1:20 Indices: Up to 1:20 Crypto: Up to 1:2

Leverage for Swing Accounts

For swing accounts, which involve longer-term trades, the leverage is lower: Currencies: Up to 1:30 Commodities: Up to 1:8 Indices: Up to 1:10 Crypto: Up to 1:1

News Trading :-

News trading, which involves trading around major news events, is usually restricted because of the high risk. However, Instant Funding offers add ons for traders who want to take advantage of these opportunities. By default, traders aren’t allowed to trade during high-impact news events, but they can buy an add-on that lets them trade 4 minutes before and after the news is released. Although Swing accounts are not effected by holding a trade through high impact news events.

Holding Trades Overnight and Over the Weekend :-

Traders can hold their trades overnight and even over the weekend, giving them more flexibility in how they manage their positions.

Additional Add-Ons for Enhanced Trading :-

Major News Trading Add-On

This add-on allows traders to trade during major news events, which can be crucial for certain strategies.

5-Day Payout Add-On

With this add-on, traders can get their payouts every 5 days instead of the usual 14.

Enhanced Profit Split

Traders can increase their profit share by an additional 10% with this add-on.

Increased Max Drawdown

Another add-on allows traders to increase their maximum drawdown limit by 2%, giving them more room to manage their trades.

Available Account Sizes :-

Instant Funding offers different account sizes in Phase 1 of the Two-Phase Challenge to suit traders with varying experience levels and capital needs. Traders can choose from account sizes of $10,000, $25,000, $50,000, or $100,000, depending on what best fits their trading style.

Conclusion

The Instant Funding Two-Phase Challenge provides a structured and flexible way for traders to gain access to substantial trading capital. With clear profit targets, risk management rules, and the ability to customize their accounts, this challenge is suitable for traders at all levels. By passing both phases, traders can demonstrate their skills and earn a funded account with attractive profit-sharing options. Whether you’re a seasoned trader or just starting, the Two-Phase Challenge from Instant Funding could be the key to taking your trading to the next level.