Daily Drawdown Limit To ensure safety on our trading platform, we have set a 5% daily drawdown limit. If your total daily loss exceeds this 5% threshold, it is considered a hard breach, and your account will be automatically closed, terminating all trading activity.
Example: 5% Daily Drawdown Limit on a $10,000 Account Imagine you have an account with a balance of $10,000. Your daily drawdown limit is 5%, which equals $500 ($10,000 × 0.05 = $500).
At the start of the day (when the market opens), your account balance is $10,000. Your "safety threshold" is $9,500 ($10,000 - $500).
Trading Process:
If your account balance drops below $9,500 at any point during the day due to your trades, it is considered a hard breach.
For example, if your total realized and floating loss reaches $501, bringing your balance to $9,499, the system will flag this as a breach.
Result: Your account will be automatically closed, and all trading activity will be terminated immediately.
Important Note: The limit is calculated based on the account balance at the start of the day. Therefore, always keep this $500 daily loss limit in mind while trading.
