When will I break the daily loss limit?

The maximum daily loss is the amount that you are allowed to lose daily. This rule will use a higher value between equity and balance. This rule is set as a percentage of the starting capital or balance of each day. The rule states that the capital of the day, which is the result of the current floating PnL (profit and loss) in total with all closed positions on that day, should not reach the maximum daily loss limit. The daily maximum loss is reset at 00:00 every day.

Example 1:
The amount of funds exceeds the balance at the beginning of the day.

At the beginning of the fifth day, your account balance is $105,000 and your capital is $107,000. The daily loss limit is 5% of the capital, as it is higher:
Daily loss = $107,000 * 5% = daily loss limit of $5,350.
This means that your capital cannot fall below $107,000–$5,350.
Daily loss limit = $101,650 on the 5th day.
If at any point on the fifth day your capital falls below $101,650, your account will be closed.

Example 2:
The balance is higher than the equity at the beginning of the day.

At the beginning of the seventh day, your account balance is $100,000 and your capital is $99,000. The daily loss limit is 5% of the balance, as it is higher:
Daily limit = $100,000 * 5% = daily loss limit of $5,000.
This means that your capital cannot fall below $100,000–$5,000. Daily loss limit = $95,000 on day 7.
If at any point on the seventh day your capital falls below $95,000, your account will be closed