The Max Daily Loss, also known as the Max Daily Drawdown, limits how much equity your Instant Prime account can lose during a single trading day.
Applies to: Instant Prime accounts purchased after Oct 24, 5 PM EST. The daily loss limit is 2.5% of your initial capital, recalculated every day at 5 PM EST.
What Is the Max Daily Loss Rule?
At 5 PM 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.
Examples ($100,000 Account)
Scenario | At 5 PM EST | Calculation | Result |
Example 1: floating profit | Open trade with floating profit of $3,000. Account equity: $103,000 | $103,000 - $2,500 = $100,500 | Your equity cannot drop below $100,500 during the next trading day |
Example 2: floating loss | Open trade with floating loss of $1,000. Account equity: $99,000 | $100,000 - $2,500 = $97,500 | Your equity cannot drop below $97,500 during the next trading day |
Example 3: no open trades | No open trades. Account balance and equity: $105,000 | $105,000 - $2,500 = $102,500 | 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 5 PM 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.