Daily Loss Limit
The daily loss limit is the maximum amount you can lose in a single trading day before your account is breached. Here's exactly how it's calculated, when it resets, and what happens when you hit it.
What is the daily loss limit?
The daily loss limit caps your loss for a single trading day. The moment your live equity drops below this floor, all open positions are automatically closed and your account is breached. This rule exists to enforce daily risk discipline and prevent revenge trading after a bad day.
How it's calculated
At 00:00 UTC every day, the system records your daily start equity — your account equity at the start of the trading day. This becomes the reference point for the entire day.
Your daily loss floor is then:
daily_loss_floor = daily_start_equity − daily_loss_limit
Throughout the day, your live equity (balance + unrealized PnL of all open positions) is monitored in real time. If it ever touches or drops below the floor → breach.
Worked example — Challenge 50K
Account: Challenge 50K · Daily loss limit: $1,500
Day starts at 00:00 UTC with equity = $50,000
Daily loss floor = $50,000 − $1,500 = $48,500
You take 3 trades during the day: −$300, −$500, −$400. Total realized: −$1,200.
Live equity = $48,800. Floor = $48,500. Difference: $300 remaining.
You can still trade but you're 80% consumed. The platform shows a "High" near-breach alert.
Same start. You take a winning trade (+$200), then open a position. Realized = +$200, equity = $50,200.
Position drops to −$1,800 unrealized. Live equity = $50,200 − $1,800 = $48,400.
$48,400 ≤ $48,500 → BREACH. The position is force-closed at the breach price. Account status changes to BREACHED.
Important: the open position counts toward your daily loss in real time, not just at close.
When the daily loss resets
The daily loss counter resets at 00:00 UTC every day. At that moment, the system records your new daily start equity for the new day.
Open positions are not closed at daily reset. Only the counter resets. Any unrealized PnL on your open positions carries into the new day and starts contributing to the new daily loss calculation.
Which accounts have a daily loss limit?
| Account | Daily loss |
|---|---|
| Rapid (Sprint 25K/50K/100K) | None — disabled by design |
| Classic (Challenge 25K/50K/100K) | Active |
| Discipline (Precision 25K/50K/100K) | Active — strictest values |
What happens on a daily loss breach
- All open positions are immediately closed at current market price
- Account status changes to
BREACHED - You receive a real-time notification with the breach reason
- Trading is permanently disabled on this account
- You can choose to reset the account (if eligible) or close it
UTC ensures the daily reset happens at the same moment for every trader worldwide. No timezone confusion, no cheating with timezone arbitrage. The market opens for everyone at the same instant.