1. How is the Maximum Daily Loss calculated?

Fixed Daily Loss Value (depends on package) — The Max Daily Loss percentage (e.g., 2%, 4%, 5%) is fixed for the account package.

Daily Loss Limit = InitialBalance × DailyLoss% (this value does not change during the day).

For example, if your Initial Balance is $100,000 and the Dailyloss is 4%, then:

  • Daily Loss Limit = $100,000 × 4% = $4,000.

2. What are Prev Equity and Prev Balance, and why do they matter?

At the start of each trading day, the system records two values:

  • Prev Balance: Your account balance at the end of the previous day

  • Prev Equity: Your equity at the start of the day (including any open positions)

If you hold positions overnight, Prev Equity and Prev Balance may be different.

The system will always use the higher value of the two as the reference for calculating the daily loss threshold.

Example 1: Equity is higher than Balance

  • Prev Balance: $105,000

  • Prev Equity: $107,000

  • Daily Loss Threshold: $107,000 – $4,000 = $103,000
    → If your Equity drops below $103,000 at any time during the day, your account will be terminated

Example 2: Balance is higher than Equity

  • Prev Balance: $100,000

  • Prev Equity: $99,000

  • Daily Loss Threshold: $100,000 – $4,000 = $96,000
    → If your Equity drops below $96,000 at any time during the day, your account will be terminated.

Learn More Examples of This Rule Here

WHAT HAPPENS IF I BREAK THE DAILY LOSS RULE?

​The account will be automatically liquidated for the remainder of the trading day until the market is closed on the trading day if the Daily Loss was reached or surpassed for that trading day. You CAN NOT resume trading since it is a rule violation. You need to buy a new package to start again

A market order is sent to close any open positions by the auto liquidation mechanism when a Loss Limit threshold is reached. This can mean that the trader’s P&L ends up over the Loss Limit threshold, which would mean that the Real Loss is more than the Daily Loss Limit, depending on where the market was fluctuating. If the trader’s Net P&L does, in fact, “hit and exceed” the Daily Loss Limit, then the auto liquidation, even with the ending P&L, is unquestionably the result of that liquidation.