Daily Loss Limit is the maximum amount of money a trader is allowed to lose in a day.
The daily loss limit for traders in the 1- Step Prime account is 4%, while for the 2- Step Prime account, it is set at 5% of the previous day’s closing balance. These limits apply to both challenge and Hola Prime X Accounts.
The loss on any day, which is the sum of the current floating PnL and total PnL on closed trades, cannot exceed the Maximum Daily Loss Limit. The daily maximum loss is reset every day at 17:00 EST server time.
For Instance, on our 2-Step Prime account, the daily loss limit is 5% of the previous day’s closing balance.
So, considering $100,000 as the initial balance, on Day 1, the daily loss limit will be ($100,000*5%)= $5000
If at the end of day 1, your account’s closing balance is $110,000, then the
loss limit for Day 2 would be = $5,500
This means your equity on Day 2 can’t go below $104,500 ($110,000- 5% of $110,000).
If your equity goes below $104,500 at any moment on day 2, your account will be closed. If, during the day, you make a profit of $7,000, then the loss limit during the day shall be allowed up to ($110,000*5% + $7,000), which will be $12,500.
Another example: On our 1-Step Prime account, the daily loss limit is 4% of the previous day’s closing balance.
So, considering $50,000 as the initial balance, on Day 1, the daily loss limit will be ($50,000*4%)= $2000.
If at the end of day 1, your account’s closing balance is $60,000, then the
loss limit for Day 2 would be = $2,400 ($60,000*4%)
This means your equity on Day 2 can’t go below $57,600 ($60,000- 4% of $60,000).
If your equity goes below $57,600 at any moment on day 2, your account will be closed.
If, during the day, you realize a significant loss of around $1,000. After this, you initiate another trade. At any given moment, if your running trades exceed the floating loss of $1400, your account will breach the daily loss limit.
