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The Daily Loss Limit, Explained
2:59 · 8 chapters · Forex lessons, part 71
What you'll learn
The daily loss limit counts open trades, so you can fail on a winning day. Set your own stop at half the limit.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- What a prop firm daily loss limit is and how it is measured
- Key point 2
- Why open trades and equity can breach the limit before you close
- Key point 3
- Why the daily allowance does not grow as you make profit
- Key point 4
- How the daily reset time can split your trading session
- Key point 5
- How to set a personal daily stop at half the firm's limit
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.