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What is the Maximum Loss Limit?

Learn what the Maximum Loss Limit is and when a breach occurs.

Written by Lior

The Maximum Loss Limit is the maximum amount your account can lose before it breaches the applicable Trading Rules.

A breach occurs if your Equity falls below your Maximum Loss Limit at any point.

Depending on your Evaluation Program, the Maximum Loss Limit is calculated using either a Static or Trailing model.


How It Works

The Maximum Loss amount is based on your initial account balance.

Each Evaluation Program uses either a Static or Trailing Maximum Loss model, which determines how your Maximum Loss Limit is calculated throughout your Evaluation Program or Simulated Funded Account.


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Important

  • The Maximum Loss amount is based on your initial account balance.

  • A breach occurs when your Equity falls below the applicable Maximum Loss Limit.

  • Your Evaluation Program determines whether your Maximum Loss Limit is Static or Trailing.


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