FPFX — Daily Loss Limit (Equity-Based)

At FPFX, the daily loss limit is equity-based, meaning both closed and floating trades (including swaps and commissions) are considered when calculating losses.

This approach ensures real-time risk control based on your account equity, not just your balance.

The daily loss limit is determined according to the specific challenge type:

 One Step Challenge: Daily loss limit is 4% of the initial balance (equity-based).

Two Steps Challenge: Maximum allowable daily loss is 5% of the initial balance (equity-based).

Three Step Challenge: Daily loss limit is 5% of the initial balance (equity-based).

FPFX Pro Challenge: Daily loss limit is 6% of the initial balance (equity-based).

This limit resets automatically at midnight server time (GMT+3 during summer and GMT+2 during winter).

Example Scenarios (Equity-Based)

Example 1 – Loss Scenario:

In a Two Steps Challenge with a $100,000 account, if your daily loss limit is $5,000 and you’ve incurred $4,000 in closed losses, you may only sustain an additional $1,000 loss, including unrealized losses, swaps, and commissions.

If your equity drops by more than $5,000 at any point during the day, it will be considered a breach.

Example 2 – Profit Scenario:

If you earn $5,000 profit in a single day, your daily loss limit increases to $10,000, combining your $5,000 profit with the original $5,000 limit.

Any equity drop exceeding this total—whether realized or unrealized—would count as a violation.

Example 3 – Floating Losses:

If you record a $4,000 closed loss and have an open floating loss of -$1,500 that later closes at +$500, you still breach the rule if your equity fell by more than $5,000 at any point during the trade.

It is essential to monitor your equity continuously and understand how both floating and realized P/L affect your daily drawdown limit to remain fully compliant with FPFX rules.