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:
2.5% from the initial capital for PRIME Instant Funding Accounts.
3% from the initial capital for Instant Funding Accounts.
4% from the initial capital for 1-Step Flash Accounts.
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).
Example 1 (Flash Account):
Initial 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):
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 (Flash 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:
The daily loss limit includes commissions and swaps.
Exceeding your daily loss limit will result in account closure and forfeiture of any gains.