A daily loss limit is the line where your trading day ends whether you like it or not. Cross it and the account locks until the next session. It's the single most common way funded accounts die, so it's worth knowing exactly how yours works.
How much can you actually lose
Most firms set the daily loss limit somewhere around 4-5% of the starting capital, though it varies. On a smaller account that's a tighter leash than it sounds. The number is usually fixed per account size and stays the same every day - it doesn't grow just because you had a good week. Check your own firm's figure rather than assuming; they're not all identical.
Where the limit is measured from
This is where firms differ, so read the fine print. Some calculate the limit from the prior day's closing balance. Others measure it intraday, from the day's opening balance or a high-water mark. Same 'daily loss limit' label, different math - and the difference decides how much room you actually have at any given moment.
Does floating P&L count against you
Another spot where firms don't agree. Many count unrealized, floating P&L against the limit - meaning an open position sitting at a big loss can trip the lock before you ever close it. Others only count realized losses. If your firm counts floating P&L, a trade that's underwater 'on paper' is just as dangerous as a closed one. Assume it counts unless your firm clearly says otherwise.
What happens when you hit it
Nothing dramatic on your end - you're just done. Most firms lock you out for the rest of the session once the limit breaches, and some go further and fail the account outright depending on the program. Either way, the day's over. The goal is to never get close enough to find out how your specific firm handles it.
Knowing your daily loss limit and actually stopping at it are two different skills, and the second one fails right when it matters. Qloner lets you set the daily loss limit per account and enforces it in real time - at the line, it flattens your position and locks the account for the day. The decision gets made while you're calm, not mid-tilt.
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