What is Daily Loss Limit?
A daily loss limit is the most you are allowed to lose in a single trading day before the account is failed or locked for the day. It resets each session, so it sits on top of the overall drawdown rule and catches blow up days even when the total account floor is still far away. Many firms measure it against intraday equity, not just closed trades.
Why Daily Loss Limit matters
It is a separate tripwire from total drawdown, so a single bad day can end an attempt even with the account well above its floor.
Related terms
Lessons that use this term
Continue