How is daily loss calculated?

Current daily loss = results of closed positions of this day + result of open positions.

For example, in the case of the FinoTrader Challenge with the initial account balance of $100,000, the Max Daily Loss limit is $5,000. If you happen to lose $3,000 in your closed trades, your account must not decline more than $2,000 this day. It must also not go -$2,000 in your open floating losses. The limit is inclusive of commissions and swaps. Vice versa, if you profit $2,000 in one day, then you can afford to lose $7,000, but not more than that.

The size of the Maximum Daily Loss gives trader enough space for trading and it guarantees a clearly defined daily risk to the investor. Both the trader and investor benefit from this rule as the account value will not drop below the limit. That’s also why the Maximum Daily Loss limit includes your possible floating losses.

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