What is a daily loss limit?
It is the most a trader can lose in one day before breaking the account rules.
Tool 3
Daily Loss Limit Calculator
Know when to stop trading before a bad day becomes a failed account.
A daily loss limit is the maximum loss allowed in one trading day. This tool combines closed and open profit/loss so you can see whether you still have room or should stop.
Calculator
Example Walkthrough
If the daily loss limit is $2,000 and you are down $750 including open trades, you have $1,250 of firm room left. A personal stop should usually be tighter than the firm limit.
Common Mistakes
- Only counting closed trades.
- Letting open losses drift into the rule limit.
- Trying to win back the day after hitting a personal stop.
- Not knowing whether the firm uses balance, equity, or both.
Checklist Before Trading
- I know the daily loss rule.
- I included open trades.
- I have a personal stop for the day.
- I will stop before reaching the firm limit.
FAQ
Do open losses count?
Some firms count open losses and equity, while others focus on closed balance. Traders should check the official rule before trading.
When should I stop trading for the day?
Stop before the firm limit is close. A personal stop that is smaller than the firm rule can protect the account.
Why do beginners break daily loss rules?
Many keep trading after an early loss. Revenge trading can turn one bad trade into a failed evaluation.
Related Tools
Next, use the Trailing Drawdown Calculator or Evaluation Progress Tracker.
Source note: formula logic is stored in assets/js/calculators.js. Last updated July 2026.