The Maximum Daily Loss is the maximum amount you are allowed to lose in a single day, calculated using the higher value between your account's equity and balance at the start of the day. Your daily equity, which includes your floating Profit and Loss (PnL) plus all closed positions for that day, must not exceed the Maximum Daily Loss limit, set as a percentage (i.e. as 3% for Instant Funding) of your starting equity or balance. This rule ensures that your daily losses remain within a manageable limit, protecting both your capital and the overall stability of your trading account. The Maximum Daily Loss resets every day at 9 PM UTC.
EXAMPLE 1:
You hold a $40,000 Instant Funding account.
At the start of Day 7:
Your balance is $40,000
Your equity is $41,000
Since equity is higher, we calculate the Daily Loss Limit from $41,000.
3% of $41,000 = $1,230
$41,000 - $1,230 = $39,770
If your equity drops below $39,770 at any time during Day 7, your account will be closed.
EXAMPLE 2:
You hold a $40,000 Instant Funding account.
At the start of Day 8:
Your balance is $42,000
Your equity is $41,000
Since the balance is higher, we calculate the Daily Loss Limit from $42,000.
3% of $42,000 = $1,260
$42,000 - $1,260 = $40,740
If your equity drops below $40,740 at any time during Day 8, your account will be closed.