The Maximum Daily Loss is the amount you are permitted to lose each day, calculated as a percentage of that day’s starting balance or equity, whichever is higher. This rule ensures that your equity for the day, including floating PnL (Profit and Loss) and all closed positions, does not exceed the Maximum Daily Loss Limit. The daily maximum loss resets at 00:00 CE(S)T/server time each day.
Example 1: Equity is higher than the balance at the start of the day (1-Step Model)
At the start of day 5, your account balance is $105,000, and your equity is $107,000. The Daily Loss Limit is 5% of the higher equity:
Daily loss = $107,000 * 5% = $5,350 Daily Loss Limit.
This means your equity cannot fall below $107,000 – $5,350 Daily Loss Limit = $101,650 on day 5.
If your equity drops below $101,650 at any time on day 5, your account will be closed.
Example 2: Balance is higher than the equity at the start of the day (1-Step Model)
At the start of day 7, your account balance is $100,000, and your equity is $99,000. The Daily Loss Limit is 5% of the higher balance:
Daily loss = $100,000 * 5% = $5,000 Daily Loss Limit.
This means your equity cannot fall below $100,000 – $5,000 Daily Loss Limit = $95,000 on day 7.
If your equity drops below $95,000 at any time on day 7, your account will be closed.