How to Calculate Your Max Daily Loss
Every trader has a daily loss limit, also known as a daily drawdown. At 5pm EST each day, we calculate your daily loss limit by taking the higher value of your account balance or account equity and subtracting:
4% from the initial capital for 2-Step Pro Accounts.
This gives you the maximum equity your account can lose for the next trading day.
Note for 2-Step Pro Accounts : The 5% Daily Loss Limit only applies to accounts that were purchased before November 5, 2025
Example 1 (Pro Account):
Initial Account Balance: $100,000
Open Trade with Floating Profit: $4,000
Account Equity at 5pm EST: $105,000
Daily Drawdown Limit: Your equity cannot drop below $101,000 ($105,000 - $4,000).
Example 2 (Pro Account):
Initial Account Balance: $100,000
Open Trade with Floating Loss: $1,000
Account Equity at 5pm EST: $99,000
Daily Drawdown Limit: Calculated based on your balance of $100,000, so your equity cannot drop below $96,000 ($100,000 - $4,000).
Example 3 (Pro Account):
Initial account Balance: $100,000
No Open Trades at 5pm EST: The daily drawdown is 4% ($4000) of your closed balance.
Account balance and equity at 5pm EST: $105,000
Daily Drawdown Limit: Calculated based on your balance of $105,000, so your equity cannot drop below $101,000 ($105,000 - $4,000).
Important Notes:
Daily drawdown is based on intraday movement, not daily close
Floating losses count toward daily drawdown
Recovering above the limit does not undo a breach
Daily drawdown applies independently from max drawdown
The daily loss limit includes commissions and swaps.
Exceeding your daily loss limit will result in account closure and forfeiture of any gains.