The Daily Loss Limit is the maximum amount your account can lose in a single day. It is based on your previous day’s end-of-day balance, which resets at 5 PM EST.
The limit compounds as your account grows — meaning it increases when your balance increases.
Example:
If your end-of-day balance yesterday (5 PM EST) was $100,000, with a daily drawdown of 5%, your Daily Loss Limit would be $95,000.
This means your equity cannot fall below $95,000 at any time during the trading day.
Even if you start the next day with $105,000 in equity, your loss limit for that day still uses the previous day’s $100,000 balance — so your limit remains $95,000 until the next reset.