When do I breach the maximum loss limit? (1step)

1 min. readlast update: 08.07.2024

The Maximum Loss Limit is the amount your equity or balance can't go below. This rule is set to % of each model of the initial account size. For example, if you have a $100.000 account of 1-Step model and the Maximum Loss Limit is 8%, your equity or balance can't go below $92.000 at any moment.

 

Example

 

You have chosen to go for a $100.000 account. The Maximum Loss Limit is 8% of the initial balance, which is $100.000 for this example, 1 Step Model :

Maximum Loss = $100.000 * 8% = $8.000 Maximum Loss Limit.

This means your equity/balance can't go lower than $100.000 - $8.000 Maximum Loss Limit= $92.000

If your equity/balance goes below $92.000 at any specific moment in time, your account will be closed.

Was this article helpful?