What is the Maximum Daily Drawdown Limit?

Posted on 2024-11-23 Updated on 2024-11-14

One Step Challenge: -4% of the Initial Balance

​Two Steps Challenge: -5% of the Initial Balance

Three Step Challenge: -5% of Initial Balance

FPFX Pro Challenge: -6% of Initial Balance

The maximum allowable daily loss limit at FPFX is established each day at 00:00 (server time: GMT+3 during summer and GMT+2 during winter), and it is determined by your account balance.

How is the daily loss calculated?

At FPFX, the daily loss limit is defined based on the specific challenge type:

  • Two Steps Challenge: The maximum loss permitted in a single day is 5% of the initial balance.
  • One Step Challenge: The maximum loss permitted in a single day is 3% of the initial balance.

This limit is reset at midnight (server time: GMT+3 in summer, GMT+2 in winter).

Illustrative Examples:

  • For an Account balance of $100,000: If your limit is $5,000 and you have incurred a loss of $4,000 from closed trades, you may only sustain an additional loss of $1,000, which includes unrealized losses, swaps, and commissions. Surpassing this limit would be considered a breach.

  • Profit Scenario: If you generate a profit of $5,000 in a day, your daily loss limit will increase to $10,000 ($5,000 profit plus $5,000 daily loss limit). Any losses exceeding this total, whether realized or unrealized, would constitute a violation.
  • Floating Loss: If you experience a loss of $4,000 and have an open trade with a floating loss of -$1,500 that subsequently closes at +$500, you would have violated your limit if, at any point during the trade, your cumulative loss exceeded $5,000.

It is essential to continuously monitor your trades and comprehend how daily losses and gains affect your account to remain compliant with the established limits.

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