Understanding the Maximum Daily Loss Rule
At Fundex Plus, the Maximum Daily Loss is designed to help traders maintain disciplined risk management and avoid excessive losses within a single trading day.
The Maximum Daily Loss limit depends on the account type purchased and is calculated using your account equity, which includes both realized and unrealized (floating) profit and loss.
The daily loss limit resets each day at 5:00 PM EST.
How Does It Work?
Your account equity must never exceed the Maximum Daily Loss threshold assigned to your account during a trading day.
Example:
If you have a $100,000 account with a 4% Maximum Daily Loss limit, your account equity must not fall below $96,000 at any point during the day.
This calculation includes:
Closed losses
Open floating losses
Any active positions affecting account equity
Even if losses are unrealized, they are still included in the daily loss calculation.
Important Notes
The Maximum Daily Loss is monitored in real time.
Open positions are included in the calculation.
The limit resets daily at 5:00 PM EST.
Breaching the Maximum Daily Loss rule results in an immediate account violation.
The purpose of this rule is to encourage responsible risk management and help traders maintain consistency while protecting their accounts from excessive single-day drawdowns. 🚀