Prop firms
What is Daily loss limit?
By the verify.trading team · Last reviewed · How we write
Key points
- Percentage or amount, measured per day.
- May include floating losses on open trades.
- Reset time varies by firm.
Daily loss limit explained
Firms define it differently: as a percentage of the starting balance or of the day's opening balance, measured on balance or on equity, and reset at a set time of day. Floating losses on open trades often count.
Because the definition drives what counts as a breach, read the rule text itself and check when the day resets in your own time zone.
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General education, not investment advice. Regulatory limits and prop firm rules change; check the official source. verify.trading provides records and analysis, not investment advice; trading involves significant risk of loss. Absence of a regulatory action is not an endorsement, and absence from a regulator's list is not proof of authorisation.