Enjoy 27% Off on all Challenges + 10% Profit Share Add-on. Code: SUMMER✦

OREF: Rule 2C & Rule 2D Classification List

In the Funded7 risk management framework, correlated instruments are managed together in groups called “Risk Buckets.”

Rule Definitions

Rule 2C – Bucket Concentration

This rule limits the combined risk across instruments within the same Risk Bucket (correlated group). It prevents over-concentration in single market sectors.

  • Limit: A violation occurs if the total risk within a single bucket exceeds the account type’s limit.

Rule 2D – Portfolio Concentration

This rule limits the total combined risk across all open positions in the entire portfolio.

  • Limit: A violation occurs if the total risk across all buckets exceeds the account type’s limit.

Risk Limits by Account Type (Common to Rule 2C / 2D)

Account Type Risk Limit
Pro (Gold) 3.0% of seed capital
Silver 2.0% of seed capital
Bronze 1.0% of seed capital

Calculation Notes:

  • Netting: Long and short positions in the same instrument are offset, and only the net risk is calculated.
  • Summing: The net risks of all instruments within a single bucket are summed together for the Rule 2C check.

Risk Bucket Classification List

Forex

  • Bucket 1: USD Long Correlation
    EUR/USD, GBP/USD, NZD/USD, AUD/USD
  • Bucket 2: USD Short Correlation
    USD/JPY, USD/CHF, USD/CAD
  • Bucket 3: EUR Crosses
    EUR/GBP, EUR/CHF, EUR/CAD, EUR/AUD, EUR/NZD
  • Bucket 4: JPY Crosses
    GBP/JPY, EUR/JPY, AUD/JPY, CAD/JPY, CHF/JPY, NZD/JPY
  • Bucket 5: GBP Crosses
    GBP/CHF, GBP/CAD, GBP/AUD, GBP/NZD
  • Bucket 6: Commodity Crosses
    AUD/CAD, AUD/NZD, CAD/CHF, NZD/CAD, NZD/CHF, AUD/CHF
  • Bucket 7: USD Exotics
    USDCNH, USDCZK, USDHKD, USDHUF, USDMXN, USDNOK, USDPLN, USDSEK, USDSGD, USDZAR
  • Bucket 8: EUR Exotics
    EURCZK, EURHKD, EURNOK, EURPLN, EURSEK
  • Bucket 9: Other Exotics
    AUDSGD, SGDJPY

Metals & Commodities

  • Bucket 10: Metals
    XAU/USD, XAG/USD, XPD/USD, XPT/USD
  • Bucket 11: Oil & Energy
    USOIL, UKOIL
  • Bucket 12: Natural Gas
    NATGAS

Indices

  • Bucket 13: US Large-Cap Indices
    US500 (S&P 500), US30 (Dow Jones), US100 (NASDAQ)
  • Bucket 14: US Small-Cap Indices
    US2000 (Russell 2000)
  • Bucket 15: European Indices
    GER40, UK100, FRA40, EU50, ESP35, ITA40, SWI20
  • Bucket 16: Asia-Pacific Indices
    JPN225, HK50, AUS200

Crypto & Others

  • Bucket 17: Major Crypto
    BTCUSD, ETHUSD
  • Bucket 18: Altcoins
    XRPUSD, LTCUSD, SOLUSD, BNBUSD, BCHUSD
  • Bucket 19: Dollar Index
    USDIDX

Examples (Pro Account: 3.0% Limit)

  • Rule 2C Violation (Bucket Concentration):
    If you risk 1.6% on EUR/USD and 1.5% on GBP/USD (both in Bucket 1), the total is 3.1%. This exceeds the single bucket limit and results in a violation.
  • Rule 2D Violation (Portfolio Concentration):
    If you risk 2.0% in Bucket 4 and 1.5% in Bucket 10, each bucket is within its 3.0% limit (Rule 2C). However, the total portfolio risk is 3.5%, which exceeds the overall account limit and results in a violation.