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: 5% Daily Loss Limit.
- One-Phase Account: 3% Daily Loss Limit.
Calculation Time #
- The Daily Loss Limit is recalculated every day at Market Rollover, 21:00 (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 21:00 (UTC) to calculate your Daily Loss Limit.
Example #
- Let’s say you have a $100,000 account in the Two-Phase program.
- At 21:00 (UTC), 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 5% of $103,500, which equals $5,175.
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.
