Daily Loss Calculation
Description of Daily Loss Calculation
Daily Loss Limit - the maximum allowable drawdown within a day.
Formula: Daily Loss = Current Equity − Balance at the start of the day
Balance - your account value, taking into account all closed positions.
Changes only when positions are closed, upon deduction of opening or closing fees, or upon accrual/deduction of Funding Fees.
Equity - the current account value, taking into account all closed and open positions.
Changes in real-time.
Formula: Equity = Balance + Floating PnL
The daily loss limit is updated at 00:13 UTC+4
IMPORTANT NOTE ON FEES
In all examples, we do not account for fees for simplicity, but in real trading:
Fees AFFECT the balance and equity immediately when a position is opened/closed.
Fees ARE INCLUDED in the Daily Loss calculation and are not included in the position's PnL.
Example 1 - Intraday Loss
Challenge - Boost
Initial conditions:
Balance at the start of the day: $10,000
Daily Loss Limit: -$500
Opened a trade — floating loss: -$200
Current Equity = $10,000 - $200 = $9,800
Calculation: Daily Loss = $9,800 - $10,000 = -$200
Limit not exceeded (-200 > -500)Example 2 - Carrying a Loss Over to the Next Day
Challenge - Boost
Initial conditions:
Day 1
Balance at the start of the day: $10,000
Daily Loss Limit: -$500
Opened a trade – floating loss: -$200
Equity at the end of the day = $9,800
Balance at the end of the day = $10,000 (trade not closed!)
_________
Day 2
Balance at the start of the day: $10,000
Trade is still open (floating loss: -$200)
Equity at the start of the day = $9,800
Calculation:
Daily Loss = $9,800 - $10,000 = -$200
📌 $200 of the daily loss limit is already used!Example 3 - Intraday Profit
Challenge - Boost
Initial conditions:
Balance at the start of the day: $10,000
Daily Loss Limit: -$500
Opened a trade — floating profit: +$200
Current Equity = $10,000 + $200 = $10,200
Calculation: Daily Loss = $10,200 - $10,000 = +$200
You are in profit, your safety margin has increased.Example 4 - Carrying a Profit Over to the Next Day
Challenge - Boost
Day 1
Balance at the start of the day: $10,000
Daily Loss Limit: -$500
Opened a trade — floating profit: +$200
Equity at the end of the day = $10,200
Balance at the end of the day = $10,000 (trade not closed!)
Day 2
Balance at the start of the day: $10,000
Trade is still open (floating profit: +$200)
Equity at the start of the day = $10,200
Calculation:
Daily Loss = $10,200 - $10,000 = +$200
You are in profit, your safety margin has increased.Example 5 - Multiple Open Positions
Challenge - Boost
Initial conditions:
Balance at the start of the day: $10,000
Daily Loss Limit: -$500
Opened a trade — floating loss: -$200
Opened another trade — floating profit: +$400
Current Equity = $10,000 - $200 + $400 = $10,200
Calculation: Daily Loss = $10,200 - $10,000 = +$200
You are in profit, your safety margin has increased.Last updated