Daily loss (step1)

How is Daily Loss Calculated?

Daily Loss is calculated based on the highest recorded equity balance at the start of each trading day. This means that the highest equity balance is considered, and open positions are  included in determining this balance.

Daily Loss Update

Daily Loss is updated daily at 00:00 UTC. This means your base balance and Daily Loss limit will be recalculated at this time.

Example

Let's assume your base balance at the start of the day is $10,000. Therefore, your Daily Loss limit will be 4% of $10,000, which equals $400. This means you can lose up to $400 on that day.

Day 1:

• Starting Balance: $10,000
• Daily Loss Limit: 4% of $10,000 = $400

You open a position and carry it over to the next day.

Day 2:

• Update Time: 00:00 UTC

  The daily loss calculated from highest equity balance if the position is still open

  Example:

  Let’s assume your starting balance is $10,000. Therefore, your Daily Loss limit will be 5% of $10,000, which equals $400. This means you can lose up to $400 based on the highest recorded equity.

  • Day 1:
    • Highest Recorded Equity Balance: $10,400
    • Daily Loss Limit: 4% of $10,000 = $400

  You open a position and carry it over to the next day.

  • Day 2:
    • Update Time: 00:00 UTC
    • Highest Recorded Equity Balance: $10,400 (including open positions)

  Assuming at 3:00 AM GMT+3, your equity balance is $10,400, including any floating profit or loss. Your Daily Loss limit remains based on the highest recorded equity, which is $400.

  If your equity falls to $10,000, the loss from the highest recorded equity is $400 ($10,400 - $10,000). Since you have reached the Daily Loss limit, your account will be terminated.

  Summary:

  • Starting Balance: $10,000
  • Daily Loss Limit: 4% of $10,000 = $400
  • Highest Recorded Equity Balance: $10,400

  If the equity drops to $10,000, you will have reached your Daily Loss limit of $400 and will lose your account.

Important Points

• Limit Calculation: The Daily Loss limit remains unchanged while positions are open. It is updated daily at 00:00 UTC
• Realization of Profit or Loss: If you realize a profit or loss before the update time, your initial balance and Daily Loss limit will change for the next day.

Account Loss

If you exceed the 5% Daily Loss limit, you will lose your account.