We have set two different loss limits!
Max Daily Loss (5%) and Max Loss (10%).
The calculation considers closed and floating losses and profits, as well spreads, swaps and commissions.
Max Loss means the equity can not decline more than 10% of the initial deposit. Max Overall Loss is predetermined for the entire duration of the trading period.
For example:
- On a $100,000 account, the equity can not fall below $90,000.
Max Daily Loss means the starting equity for the day from 0:00 CE(S)T cannot decline more than 5% of the initial deposit during the given day. Max Daily Loss applies for a 24-hour period, starting and ending at midnight/0:00 CE(S)T (Central European Time). How is it calculated? We check the equity at 0:00 CE(S)T and it cannot decline more than 5% of the initial deposit during one day.
For example:
- On a $100,000 account, if $3,000 profits (closed or floating) are generated in one day, the profits will be added to the Max Daily Loss limit. The daily allowed drawdown will be $5,000 + $3,000 (profit) = $8,000 altogether until 0:00 CE(S)T. The Max Daily Loss will reset back to $5,000 at 0:00 CE(S)T.
- If $3,000 (closed or floating) is lost in one day, then it will be extracted from the Max Daily Loss. In this case, the daily allowed drawdown will be $2,000 altogether until 0:00 CE(S)T, which is calculated from the original Max Daily Loss of $5,000 – $3,000 (loss). The Max Daily Loss will reset back to $5,000 at 0:00 CE(S)T.
The permitted Loss Limits can be examined in the dashboards Client area.