The Maximum Daily Loss is the largest amount you can lose in a single trading day.
It’s calculated from the higher value between your account’s starting balance and starting equity at the beginning of each trading day.
Your equity, which includes both floating P&L and closed trades, must never fall more than 4% below that starting value.
If your equity drops beyond this limit, it’s considered a breach.
The Maximum Daily Loss resets every day at 9:00 PM UTC, giving you a fresh limit for the next trading session.
EXAMPLE 1
You hold a funded account and at the start of day 21, your account balance is $60,000 and your equity is $61,000. The Daily Loss Limit is 4% from the starting equity for this example, this means that your overall equity on day 21 can’t go below $58,560.
This is based on 4% Daily Loss Allowance from $61,000 which equals $2,440.
$61,000 (Starting Equity of Day) - $2,440 (4% Daily Loss Limit) = $58,560
Should your equity drop below $58,560 at any moment of time on day 21 your account will be closed.
EXAMPLE 2
You hold a funded account and at the start of day 22 your account balance is $62,000 and your equity is $61,000. The Daily Loss Limit is 4% of the starting balance. For this example, this means that your overall equity on day 21 can’t go below $59,520.
This is based on a 4% Daily Loss Allowance from $62,000, which equals $2,480.
$62,000 (Starting Balance of Day) - $2,480 (4% Daily Loss Limit) = $59,520.
Should your equity drop below $59,520 at any moment in time on day 22, your account will be closed.
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