Daily Loss Limit Explained

The daily loss limit is the maximum amount you can lose in a trading day before breaching the account. It may be based on balance, equity, or both.

Questions to verify

• When does the trading day reset?
• Is the limit based on realised loss, unrealised loss, or end-of-day balance?
• Do commissions and fees count?
• What timezone does the firm use?

Daily loss rules are especially important for high-frequency traders and anyone holding trades around session close.

Compare prop firms or return to the rules guide.