At FXIFY Futures, the Maximum Loss Limit (MLL) is a trailing drawdown that is set based on the highest End of Day (EOD) balance of your account. This method ensures that the drawdown limit follows your account's growth, offering protection while allowing for flexibility.
MLL for Starter and Expert Accounts:
For Starter Accounts:
$50,000 account: The MLL is $2,000 (4%).
$100,000 account: The MLL is $4,000 (4%).
$150,000 account: The MLL is $6,000 (4%).
For Expert Accounts:
$50,000 account: The MLL is $2,500 (5%).
$100,000 account: The MLL is $4,500 (4.5%).
$150,000 account: The MLL is $6,000 (4%).
How is MLL Calculated?
The MLL is calculated based on the highest EOD balance reached at the end of day:
Starting Balance: If you start with a $50,000 account, your initial MLL will be $48,000 (4% of the initial account balance).
If Your Balance Increases:
If your account balance grows to $51,000 by the end of the day, your new MLL will be $49,000 (4% of the initial account balance).
If Your Balance Decreases:
If the next day, your balance drops to $50,500, your MLL will remain at $49,000 and will not decrease, even though your balance is lower than the previous day.
Locking the MLL:
If your balance reaches $52,000, the MLL will now lock at $50,000 and will stay there for the remainder of the account’s lifespan, no matter how much the balance decreases after that point.
What Happens if You Hit the Maximum Loss Limit?
If your account balance falls to or below the MLL, your account will be liquidated. Any subsequent trades will not be executed.
Evaluation Accounts: If you breach the MLL on an evaluation account, you will lose eligibility for funding opportunities. However, you can reset the account by purchasing a Reset or wait for your monthly rebill to restore the account balance to the original starting amount and try again.
Funded Accounts: If the MLL is breached on a funded account, the account will be closed for trading.
You can monitor your MLL on your dashboard at any time to ensure that your account is performing within the allowed limits.