How to read a daily-loss limit

In short

Learn why start-of-day balance, equity, UTC resets, and floating P&L matter.

A daily-loss rule limits how far your equity can fall during a trading day. The firm may calculate the reference from your start-of-day balance or equity, then enforce the breach against live equity.

If floating losses count, an open position can breach the account even if you have not closed the trade. A momentary touch may be enough.

Use a calculator and keep a buffer. Trading exactly to the published limit leaves no room for spread, slippage, or a fast market move.