What is a daily loss limit and how is it calculated?

Daily floor = yesterday’s closing balance × (1 − daily limit). The limit is 5% on the 1-Step and 2-Step, 3% on Instant Funded and 3% on Prediction Markets, all measured from the previous end-of-day closed balance.

On a $10,000 1-Step account on its first day, the floor is $9,500: a loss of $500 ends the account. On Instant Funded the same balance may lose $300, so the floor is $9,700.

The daily floor usually bites first. On day one, that 1-Step account may lose $500 in a single day but $1,000 overall, so one bad session can end it long before the maximum loss is anywhere near.

MFC Stocks uses a daily pause instead: 2% of the starting balance. Hit it and positions close and trading stops until the next session, but the account stays open.

The reference is the closing balance, so the floor follows your results:

Open profit does not raise the reference until you close the trade. A good day lifts tomorrow’s floor; a bad day lowers it.

The breach check runs on equity, which includes open positions, commissions and swaps. Balance $10,000 with a trade that is $500 in the red means equity sits on the floor, and the account breaches at that moment, even if you planned to hold and the price later recovers.

That is why the stop loss has to sit inside the daily room, not just inside your idea of the trade. A stop is not a guarantee either: a gap or fast market can fill it beyond the price you set.

The day resets at 17:00 New York time. It follows New York time, so its time in UTC shifts by an hour when daylight saving changes; the countdown in your Dashboard shows it where available.

A position held over the reset carries its open loss into the new day, so the new daily room can be smaller than you expect. The reset sets a new reference for the day; it does not erase a breach or move the maximum loss floor.

Closing a losing trade and opening a new one does not give the room back. The closed loss stays in today’s result: a new trade is a new position, not a new trading day.

Treat half the daily limit as your own stop for the day. On a $10,000 1-Step that is a personal line at $250. It leaves room for slippage and for a trade that gaps against you, and it keeps one bad session from ending the challenge.

When you reach it, close the platform. Tomorrow starts with a fresh reference and your normal size.

Before the session, write today’s floor in dollars next to your balance. It takes ten seconds, and it means you never have to work it out while a trade is moving against you.