(This is only applicable for accounts purchased AFTER Oct 24 5pm EST)
What Is the Max Daily Loss Rule?
At 5pm EST each day, we calculate your daily loss limit by taking the higher value of your account’s balance or equity, then subtracting 2.5% of your initial capital.
This determines the maximum equity your account can lose during the next trading day.
Example 1
Initial Account Balance: $100,000
Open Trade with Floating Profit: $3,000
Account Equity at 5pm EST: $103,000
Calculation:
Daily Drawdown Limit = $103,000 - $2,500 = $100,500
Result:
Your equity cannot drop below $100,500 during the next trading day.
Example 2 (PRIME Account)
Initial Account Balance: $100,000
Open Trade with Floating Loss: $1,000
Account Equity at 5pm EST: $99,000
Calculation:
Daily Drawdown Limit = $100,000 - $2,500 = $97,500
Result:
Your equity cannot drop below $97,500 during the next trading day.
Example 3 (PRIME Account)
Initial Account Balance: $100,000
No Open Trades at 5pm EST
Account Balance and Equity at 5pm EST: $105,000
Calculation:
Daily Drawdown Limit = $105,000 - $2,500 = $102,500
Result:
Your equity cannot drop below $102,500 during the next trading day.
Important Notes
The daily loss limit includes commissions and swaps.
The calculation resets every day at 5pm EST based on your balance or equity at that time.
Exceeding your daily loss limit will result in account closure and forfeiture of any profits.