Daily Loss Limit is the amount by which an account size can decrease during the day (including commissions and fees). Its purpose is to limit the loss that a trader can get during the trading day.
Using the daily loss limit, you can calculate the minimum account balance itself. That is the balance that you should not go below during the entire trading day. For each new trading day, this value is recalculated at the time of daily rollover using the formula below:
Account balance before market open - (minus) daily loss limit (in the table below) = minimum account balance for a new trading day.
|Daily Loss Limit||$250||$500||$1,000||$2,000||$3,000|
Calculation example for a new $ 50,000 account: $ 50,000 (account balance before opening the market) - $ 1,000 (daily loss limit) = $ 49,000 (account balance, below which the account cannot fall during the trading day).
If the account balance falls below the minimum account balance, this will be a violation of this rule. All your current trades will be closed and the account blocked. We are checking the Daily Loss Limit rule in real time at any point of your trading with LMI.
You can unblock your Practice Session by using Restart.
You can also restart your Qualifying Session.
* When trading the Funded Session, the initial account balance equals $ 0, but the calculation formula does not change. Here is an example for a new $ 50,000 account: $ 0 (account balance before market opening) - $ 1,000 (daily loss limit) = - $ 1,000 (account balance, below which the account cannot fall during the trading day)
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