The Daily Loss Limit, also known as the Daily Drawdown, defines the maximum amount your account may lose within a single trading day. For 2-Step Pro V2 accounts, the Daily Loss Limit is 4% of the initial account balance across all account sizes.
Daily Loss Limit: 4% of the initial balance, recalculated every day at 5:00 PM EST from the higher of your balance or equity.
Daily Loss Limit Overview
Account Size | Daily Loss Limit | Daily Loss Amount |
$5,000 | 4% | $200 |
$10,000 | 4% | $400 |
$25,000 | 4% | $1,000 |
$50,000 | 4% | $2,000 |
$100,000 | 4% | $4,000 |
$150,000 | 4% | $6,000 |
$300,000 | 4% | $12,000 |
How to Calculate Your Daily Loss Limit
Every trader has a Daily Loss Limit. At 5:00 PM EST each day, the daily breach level is calculated by taking the higher value of your:
Account balance, or
Account equity
Then, the fixed Daily Loss Limit amount (see the table above) is subtracted. This creates the minimum equity level your account must stay above for the next trading day.
Example 1: Floating Profit at 5:00 PM EST ($100K Account)
Item | Amount |
Initial Account Balance | $100,000 |
Open Trade Floating Profit | $5,000 |
Account Equity at 5:00 PM EST | $105,000 |
Daily Loss Amount | $4,000 |
Since equity is higher than balance, the Daily Loss Limit is calculated from the account equity: $105,000 - $4,000 = $101,000. Your equity cannot drop below $101,000 during the next trading day.
Example 2: Floating Loss at 5:00 PM EST ($100K Account)
Item | Amount |
Initial Account Balance | $100,000 |
Open Trade Floating Loss | $1,000 |
Account Equity at 5:00 PM EST | $99,000 |
Account Balance at 5:00 PM EST | $100,000 |
Daily Loss Amount | $4,000 |
Since the balance is higher than equity, the Daily Loss Limit is calculated from the account balance: $100,000 - $4,000 = $96,000. Your equity cannot drop below $96,000 during the next trading day.
Example 3: No Open Trades at 5:00 PM EST ($100K Account)
Item | Amount |
Account Balance at 5:00 PM EST | $105,000 |
Account Equity at 5:00 PM EST | $105,000 |
Daily Loss Amount | $4,000 |
With no open trades, balance and equity are the same: $105,000 - $4,000 = $101,000. Your equity cannot drop below $101,000 during the next trading day.
What Counts Toward the Daily Loss Limit?
The following are included:
Closed losses
Floating losses
Commissions
Swap or trading fees where applicable
Both balance and equity are monitored.
Daily Reset
The Daily Loss Limit resets each trading day at 5:00 PM EST. At the reset:
The higher of balance or equity is recorded
The fixed Daily Loss Limit amount is subtracted
A new breach level is created for the next trading day
Daily Loss Limit vs Maximum Loss Limit
Rule | Purpose |
Daily Loss Limit | Controls how much can be lost in one trading day |
Maximum Loss Limit | Controls the total maximum loss allowed on the account |
Both rules apply at the same time. You must stay within both the Daily Loss Limit and the Maximum Loss Limit.