Daily loss limit, explained with an example
A cap on how much you can lose in one day, on top of the account's max loss. Breaking it fails the account, even if you end the day in profit.
Updated October 25, 2026
How it works
The limit counts from the day's opening balance (or equity), at a time the firm sets, often 5 pm New York time.
Depending on the firm, open positions count: an unrealized loss is enough to break it.
Some futures firms only stop your day instead of failing the account. Read your plan's rule.
Worked example
A $50,000 account with a $1,000 daily loss limit. You open the day at $51,200: the account fails if equity reaches $50,200 today.
- First trade: −$400 (balance $50,800).
- Second trade: −$350 (balance $50,450).
- Third trade: the position drops to −$300 before ending at +$600. Equity touched $50,150, below $50,200: the account fails, even though the day ends at −$150.
Watch out for
- Set yourself a lower personal limit, for example half the firm's.
- Check the reset time: a position held past it moves into the next day.
- Fees and commissions count toward the loss.
43 plans have this rule
- Maven Trading Maven 2-Step 100K
- FundingPips 2 Step Standard 100K
- FTMO 2-Step 200K
- Alpha Capital Group Alpha Pro 8% 25K
- Apex Trader Funding EOD 150K
- MyFundedFutures Builder 150K
- E8 Markets E8 Signature Futures 150K
- Lucid Trading LucidDirect 150K
And 35 more, in the comparison.