How do you calculate the Daily Loss Limit?
The daily loss limit is the maximum your account can lose in a single day. This limit is calculated based on the previous day’s balance and resets at the start of each new trading day. The Daily Stop increases as your account grows.
Example: If your ending balance on the previous day was $100,000, your account would breach the daily loss stop limit if your equity drops to $95,000 at any point during the day. If your floating equity is +$5,000 on a $100,000 account, the new maximum daily loss is still based on your previous day’s balance ($100,000). Therefore, your daily loss limit would remain at $95,000.