How do you calculate the Daily Loss Limit?

The Daily Loss Limit is the maximum your account can lose in any given day. Daily Loss Limit is calculated using the previous day balance which resets at 5 PM EST. The Daily Loss limit compounds with the increase in your account. Example: if your prior day's end of day balance (5pm EST) was $100,000, your account would violate the daily loss limit if your equity reached $92,000 during the day. If your floating equity is +$8,000 on a $100,000 account, your new- day (5pm EST) max loss is based on your balance from the previous day ($100,000). So, your daily loss limit would still be $100,000.