Available for:
E8 Classic
E8 Track
E8 One
Daily Loss is a daily maximum loss limit for a trading account, and its value is based on the initial balance or scaled balance (balance after the payout). The daily limit (the loss level below which your account cannot go) is set at market rollover (00:00 Server Time) based on the starting balance of that new day. A permanent violation will occur if your account's equity or balance falls below this calculated limit at any point during the day.
Example: $100,000 Account with 4% Daily Loss
Day 1:
Initial Balance: $100,000
Daily Loss: 4% of $100,000 = $4,000
Loss level: $100,000 - $4,000 = $96,000
Violation: If equity or balance drops below $96,000.
Day 2 (Assuming starting balance is $102,500):
New Day's Starting Balance: $102,435
Daily Loss: 4% of $100,000 = $4,000
Loss level: $102,435 - $4,000 = $98,435
Violation: If equity or balance drops below $98,435.
Example with account loss analysis (Data taken from Day 2)
To better understand your limits, you can always rely on your account loss analysis, which is located in the top right corner of your dashboard.
Please note that if your account equity or balance reaches/falls below the loss level, your account will be permanently closed for breaching the daily loss rule.
Bear in mind that after the account breaches your loss level, the system will enforce closing the position automaticly, which might take a while. This might result in closing your balance above the loss level; however, closing your balance above the loss level after you breach the loss level won't prevent the account from being violated and permanently closed.
The percentage amount of daily loss(4% in this example) can be customized at the checkout when you are creating the order.