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% for Flash Accounts
5% for Pro Accounts
This gives you the maximum equity your account can lose for the next trading day.
Example 1 (Pro Account):
Account Balance: $100,000
Open Trade with Floating Profit: $5,000
Account Equity at 5pm EST: $105,000
Daily Drawdown Limit: Your equity cannot drop below $100,000 ($105,000 - $5,000).
Example 2 (Pro Account):
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 $95,000 ($100,000 - $5,000).
Example 3 (Pro Account):
No Open Trades at 5pm EST: The daily drawdown is 5% of your closed balance.
Example 1 (Flash Account):
Account Balance: $100,000
Open Trade with Floating Profit: $4,000
Account Equity at 5pm EST: $104,000
Daily Drawdown Limit: Your equity cannot drop below $100,000 ($104,000 - $4,000).
Example 2 (Flash Account):
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 (Flash Account):
No Open Trades at 5pm EST: The daily drawdown is 4% of your closed balance.
Important Notes:
The daily loss limit includes commissions and swaps.
Exceeding your daily loss limit will result in account closure and forfeiture of any gains.