The maximum loss limit is the amount below which the capital or balance sheet cannot fall. This rule is set at 10% for the 2-stage and 8% for the 1-stage challenge of the initial account size.
For example, if a trader has an account of $100,000 and the maximum loss limit is 10%, the capital or balance cannot fall below $90,000 at any time.
Maximum loss limit
1 min. readlast update: 11.30.2024