How to calculate the 2.5% daily loss limit in 10K Flash Challenge?

When the account's floating equity reaches the daily loss limit, it will be considered a hard breach.

The daily loss limit is the maximum amount your account can lose in a single day. It is calculated based on the balance from the previous day, which resets daily at 00:00 GMT+2 (Standard Time) or GMT+3 (Daylight Saving Time). The daily loss limit adjust as your balance increases.

Example 1: If your balance at the end of the previous day was $10,000, your account would exceed the daily loss limit if your equity dropped to $9,750 during the day.

Example 2: If your floating equity is +$400 on a $10,000 account, your daily loss limit for the next day is still based on your balance from the previous day ($10,000). Therefore, your daily loss limit remains at $9750.

Example 3: If you make a $400 profit on a $10,000 account, your closed balance at the end of the day would be $10,400. For the next day, your daily loss limit is calculated based on this new balance, meaning your limit would be $10,140.

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