%202.svg)
How to calculate the 5% daily loss limit in 2 Step Standard?
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 using 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 $100,000, your account would exceed the daily loss limit if your equity dropped to $95,000 during the day.
Example 2:
If your floating equity is +$6,000 on a $100,000 account, your maximum loss for the new day is still based on the previous day’s balance of $100,000. Therefore, your daily loss limit remains at $95,000.
Example 3: If you make a $5,000 profit on a $100,000 account, your closed balance at the end of the day would be $105,000. For the next day, your daily loss limit is calculated based on this new balance, meaning your limit would be $99,750.
