Daily loss limit explained (prop firms)
A daily loss limit is the most an account may lose in one trading day before the firm fails it (a hard limit) or stops it for the rest of the day (a soft limit). Firms measure it differently, from balance or equity, with or without open losses, and resetting at a set time, so read your exact program's wording.
Arnau Lavernia · Founder of Elave · Last updated:
What is a daily loss limit?
It is a cap on one day's losses, separate from the account's maximum loss. The maximum loss protects the firm over the life of the account; the daily limit stops one bad day from doing the same damage.
Hard limit: crossing it fails the account. Soft limit: crossing it ends trading for that day, and the account continues tomorrow. Several futures firms use soft limits; check your program in the table below.
Balance-based vs equity-based: what is the difference?
A balance-based limit counts closed trades. An equity-based limit also counts open positions, so a trade that is losing but still open can breach it.
FTMO is an example of a hybrid: its Maximum Daily Loss is set from the balance but checked against equity, which it defines as balance plus open positions' profit or loss, plus or minus swaps, minus commissions (FTMO Trading Objectives, read 1 November 2026).
| Measured on | Open losses count? | What it means in practice |
|---|---|---|
| Closed balance | No | Only realised losses count until you close |
| Equity | Yes | A deep open drawdown can breach the limit before you close |
| Limit from balance, checked on equity | Yes | Yesterday's closing balance sets the line; live equity is compared with it |
When does the trading day reset, and why does the time zone matter?
Each firm resets its daily limit at a fixed time. FTMO recalculates its Maximum Daily Loss Limit daily at 00:00 CE(S)T. If you trade the New York afternoon from Europe, your "day" for the firm may already have started hours before your session; a loss late in your session and a loss early the next morning can fall into different days, or the same one, depending on the reset.
Futures firms usually tie the day to the futures session rather than midnight. Read the reset time in your firm's rules and note it in your plan.
Do floating losses count?
On equity-based limits, yes. Topstep, for example, states that both realised and unrealised profit and loss count toward its Maximum Loss Limit, which it monitors in real time, and that the same logic applies to its Daily Loss Limit. A wide stop on a big position can breach a limit while the trade is still open.
What is the daily loss limit at each futures firm?
The table is generated from Elave's verified catalog: each value was read on the firm's official page on the date shown. "None stated" means the program's official page lists no daily loss limit. Rules change; confirm on the firm's page before buying an evaluation.
| Firm | Program ($50k) | Daily loss limit | Max loss | Checked |
|---|---|---|---|---|
| Apex Trader Funding | Apex EOD | $1,000 (soft) | $2,000 · end-of-day trailing | 2026-10-02 |
| Topstep | Trading Combine | $1,000 (soft) | $2,000 · end-of-day trailing | 2026-10-02 |
| Lucid Trading | LucidFlex | $1,200 (soft) | $2,000 · end-of-day trailing | 2026-10-02 |
| Earn2Trade | Gauntlet Mini | $1,100 (hard) | $2,000 · end-of-day trailing | 2026-10-06 |
| Elite Trader Funding | End of Day | $1,100 (hard) | $2,000 · end-of-day trailing | 2026-10-06 |
| Top One Futures | Elite Daily (V2) | $1,000 (soft) | $2,000 · end-of-day trailing | 2026-10-06 |
| MyFundedFutures | Rapid EOD | None stated | $2,000 · end-of-day trailing | 2026-10-02 |
| Tradeify | Select | None stated | $2,000 · end-of-day trailing | 2026-10-02 |
| FTMO Futures | Growth | None stated | $2,000 · end-of-day trailing | 2026-10-02 |
How do overnight holds and news breach it?
- Gaps: a position held overnight or over a weekend can open far beyond its stop, so the loss is bigger than planned.
- Fast markets: around high-impact news, stops can fill with slippage, again bigger than planned.
- Equity-based limits react to the open loss during the gap, before you can act.
How big should a personal buffer be?
- Write the firm's daily limit for your exact program, and whether it is hard or soft.
- Set your personal daily stop at about half of it. With a $1,000 limit, stop at $500.
- Divide your personal stop by the number of losing trades you accept in a day. Three losses at $500 means at most about $165 risk per trade.
- Lower the risk further if you hold positions overnight or through news, to absorb slippage.
- Put the stop in your platform, not only in your head.
How does Elave help with daily loss limits?
Elave's free prop-firm pages show each firm's verified rules with the official source. On MetaTrader 5, Elave Guardian shows the room left today before each prop-firm limit, gives a one-tap Stop for today and, at the firm's daily limit, closes open trades. It never opens a trade on its own. Linked Telegram users get alerts at 50%, 80% and 100% of a prop limit.
FAQ
What happens if I hit the daily loss limit?
With a hard limit the account fails. With a soft limit trading is stopped for the rest of that day and the account continues the next day. Check which one your program uses.
Does the daily loss limit include open trades?
On equity-based limits, yes: an open losing position counts. On balance-based limits only closed trades count.
What time does the daily loss limit reset?
It depends on the firm. FTMO recalculates it daily at 00:00 CE(S)T; many futures firms follow the futures session. Read your firm's rules.
Is the daily loss limit the same as the maximum loss?
No. The maximum loss is the account's total drawdown limit; the daily loss limit caps a single day. You can breach either one.
How much should I risk per trade with a $1,000 daily loss limit?
A common approach is a personal daily stop at about half the limit ($500) split across the losses you accept in a day: about $165 per trade for three losses. This is a risk convention, not a guarantee.
Keep going
Sources
- FTMO — Trading Objectives (Maximum Daily Loss) · checked 1 Nov 2026
- Topstep — What is the Maximum Loss Limit? · checked 1 Nov 2026
- Apex Trader Funding — Apex EOD rules · checked 2 Oct 2026
- Lucid Trading — LucidFlex rules · checked 2 Oct 2026
- Earn2Trade — Gauntlet Mini rules · checked 6 Oct 2026
- Elite Trader Funding — End of Day rules · checked 6 Oct 2026
- Top One Futures — Elite Daily (V2) rules · checked 6 Oct 2026
- MyFundedFutures — Rapid EOD rules · checked 2 Oct 2026
- Tradeify — Select rules · checked 2 Oct 2026
- FTMO Futures — Growth rules · checked 2 Oct 2026
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