Daily loss limits are the rule that ends the most funded accounts, because they are hit in a single bad session, not over weeks. The discipline that survives is simple: know your dollar limit before the session starts and check it after every trade.
Daily loss limit calculator
Include open positions: most firms measure the daily limit on equity, so floating losses count.
The formula behind it
Daily limit in dollars = day-start equity × daily loss %. Remaining room = limit − losses taken today (including floating losses). The reset time matters: most firms reset at midnight server time, often 5pm New York, which is why your “day” can feel shifted from your local clock.
Worked example
$100,000 account with a 5% daily loss limit has $5,000 of room. Two losing trades at $800 and $400 leave $3,800. A revenge trade at three times normal size is how accounts die, because it can burn the remaining room in one candle. See the daily vs total drawdown guide for the full framework.
FAQ
Should I set my personal limit below the firm limit?
Yes. Most consistent funded traders cut themselves off at 40 to 60% of the daily limit. The firm number is a cliff edge, not a target.
Do daily limits reset during news or weekends?
The reset clock keeps running on the firm’s server time regardless of news. Gap moves at market open can put you over the limit before your first trade, which is another reason to keep floating exposure small overnight.