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Frequently Asked Questions

How Daily Loss Is Calculated

The Basics #

  • Daily Loss Limit: This is a cap on how much money you can lose in a single trading day.
  • Two Types of Accounts: Instant Funding has two main types of accounts, each with a different Daily Loss Limit:
    • Two-Phase Account: 4% Daily Loss Limit.
    • One-Phase Account: 3% Daily Loss Limit.

Calculation Time #

  • The Daily Loss Limit is recalculated every day at midnight, according to the server time. (UTC)

What’s Used for Calculation: Balance or Equity? #

  • Balance: This is the amount of money in your account, not counting any profits or losses from open positions.
  • Equity: This is the real-time calculation of your account balance plus or minus the profits or losses from any open positions.
  • Higher Value Used: Instant Funding uses whichever is higher between your Balance and Equity at midnight to calculate your Daily Loss Limit.

Example #

  • Let’s say you have a $100,000 account in the Two-Phase program.
  • At midnight, your Balance is $102,000, and your Equity is $103,500.
  • Since $103,500 (Equity) is higher than $102,000 (Balance), it is used for the calculation.
  • Therefore, your Daily Loss Limit for the day will be 4% of $103,500, which equals $4,140.

Implications #

  • Daily Monitoring: Your Equity and Balance are monitored daily. If either falls below the Daily Loss Limit, your account is considered to have breached the limit.
  • Breaching the Limit: If you breach the Daily Loss Limit, it’s a serious matter. You can’t continue trading in the same way on that account.

Additional Points #

  • Removing Daily Loss Limit: This is removed automatically at the maximum scale of $1,260,000 ($1,600,00 – Challenges).
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Please note that all accounts we provide to our clients are demo accounts with fictitious funds, and any trading is in a simulated environment only. For more information, please feel free to visit our FAQ section. Ok, I understand