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: $11,000

Daily Loss Limit: -$500

Opened a trade — floating loss: -$200

Current Equity = $10,000 - $200 = $10,800

Calculation: Daily Loss = $10,800 - $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: $10,500

Daily Loss Limit: -$500

Opened a trade – floating loss: -$200

Equity at the end of the day = $10,300

Balance at the end of the day = $10,500 (trade not closed!)
_________

Day 2
Balance at the start of the day: $10,500

Trade is still open (floating loss: -$200)

Equity at the start of the day = $10,300

Calculation:
Daily Loss = $10,300 - $10,500 = -$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: $10,700

Daily Loss Limit: -$500

Opened a trade — floating profit: +$200

Current Equity = $10,000 + $200 = $10,900

Calculation: Daily Loss = $10,900 - $10,700 = +$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: $10,100

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 = $10,300 (trade not closed!)

Day 2
Balance at the start of the day: $10,100

Trade is still open (floating profit: +$200)

Equity at the start of the day = $10,300

Calculation:
Daily Loss = $10,300 - $10,100 = +$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.