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For traders participating Instant Funding Challenges a daily drawdown of:
2.5% is permitted.
How to Calculate Daily Loss Limit in Instant Funding
Formula:
Daily Loss Limit = Check the equity at EOD × Daily Loss Limit Percentage of Your Enrolled Challenge Account
When calculating the daily drawdown, please note that swap charges, commissions, and fees are included in the total amount.
If you exceed the daily drawdown limit this will result in the loss of your account, it will be marked with a “Daily Loss Limit” and you will no longer be able to trade.
Example 1:
You have a Instant Funding $100,000 Account, and your Daily Loss Limit is 2.5% of maximum's account balance or equity.
So, $100,000 is considered as the initial balance (Without Any Operation)
Then, your Daily Drawdown will be ($100,000 * 0.025) = $2500
Example 2:
Let’s say you are in profit at a certain time in the day,
You can calculate your Drawdown Limit for the day:
(Your initial balance + Profit amount in that day) x 0.025
You have a $100,000 Instant Funding account, and at 12:00 PM (server time GMT+3) you have made a $2,000 profit.
Therefore, your daily drawdown limit for that day will be $2,500 + $2,000 = $5,500.
In other words, losing more than $5,500 on closed or open trades during that day will violate the daily drawdown limit.
Please keep in mind that your Daily Loss Limit will reset 12:00 PM (GMT+3)
Therefore, your new daily drawdown for the following day will be calculated as the maximum's account balance or equity, multiplied by the Daily Loss Limit Percentage of your enrolled challenge (2.5%).
Example of calculation
Suppose you have purchased an Evaluation $100,000 account.
Case 01
As per the challenge model, the maximum Daily Loss Limit is 2.5% maximum's account balance or equity and you are not allowed to lose more than this amount.
Suppose you have
Equity = $98.000
Balance = $100.000
You need calculate 2.5% from Equity, it means 2.5% of $98,000.00 is $2,450.00
In such case, you can't lose more than $2,450.00 including floating losses.
NOTE: that Swap, commission rates, and fees are included in this calculation. It will be considered a violation if you lose more than $2,450 on that day.
NOTE: Please keep in mind that your Daily Loss Limit will reset at 12 PM (GMT+3)
Case 02
As per the challenge model, the maximum Daily Loss Limit is 2.5% maximum's account balance or equity and you are not allowed to lose more than this amount.
Suppose you have
Equity = $100.000
Balance = $98.000
You need calculate 2.5% from Equity, it means 2.5% of $100,000.00 is $2,500.00
In such case, you can't lose more than $2,500.00 including floating losses.
NOTE: that Swap, commission rates, and fees are included in this calculation. It will be considered a violation if you lose more than $2,500 on that day.
NOTE: Please keep in mind that your Daily Loss Limit will reset at 12 PM (GMT+3)