How the Daily Loss Floor Actually Works
Maya Ortiz
Risk & Evaluation
Every challenge account carries a daily loss floor. It is the lowest equity your account may touch during a single UTC day, and touching it ends the challenge immediately - not at the close, not after a review.
The part that surprises people is where the floor comes from. It is set from your balance at 00:00 UTC, and it does not move up when you make money during the day.
The Calculation
For a $50,000 account with a 5% daily limit, the floor at 00:00 UTC is start-of-day balance $50,000 x 0.95, or $47,500.
If you then run the account to $53,000 by midday, the floor is still $47,500. Your room to lose from that high point is $5,500, not $2,500.
Unrealized profit and loss counts. An open position moving against you can breach the floor before you ever click close.
What Counts Toward It
- Realized profit and loss on every closed trade
- Unrealized profit and loss on all open positions
- Funding paid or received while positions are held
- Trading fees
Nothing else does. Pending payout requests, store credit, and competition prizes sit outside the account balance and never shift the floor.