⚠️ Important Points: While the Daily Loss Limit is calculated based on your Balance, a violation occurs if EITHER your Equity OR your Balance drops below the calculated Breach Level.
• Rollover Window: The Daily Permitted Loss always resets at 10 PM UTC (rollover). During this period, it is not recommended to trade.
• Snapshot Time: 10 PM UTC, our system takes a “snapshot” of your Balance and Equity and uses the higher of the two to calculate the limit for the next trading day.
Note: It is not recommended to trade during this rollover period due to market volatility and spread widening.
Scenario 1: Trade OPEN during Rollover (Change of the day)
Example based on a $100,000 Account with a 4% Daily Loss Limit = $4,000.
At 10 PM UTC the system takes your Balance and Equity. You have a trade open with floating profit.
Balance: $100,000 (Trade is still open, so Balance is unchanged).
Equity: $101,000 (Balance + $1,000 Floating Profit).
The Calculation: We take your captured Equity ($101,000) to set the limit.
$101,000 - $4,000 (4% Limit) = $97,000 Breach Level.
The Rule: Your Balance OR Equity cannot be lower than $97,000 for the new day.
Since your Equity is starting at $101,000, you have a $4,000 buffer (that includes floating profit).
However your Balance is starting at $100,000 and violation will occur if you realize -$3,000 loss
Scenario 2: Trade HELD in loss during Rollover (Change of the day)
Example based on a $100,000 Account with a 4% Daily Loss Limit.
At 10 PM UTC, the system takes your Balance. You are holding a trade with loss during this window
• Balance: $100,000
• Equity: $99,000 (Because have -$1,000 unrealized loss).
The Calculation: We take your captured Balance ($100,000) to set the limit.
$100,000 - $4,000 (4% Limit) = $96,000 Breach Level.
The Rule: Your Balance OR Equity cannot be lower than $96,000 for the new day.
Since your Equity is starting at $99,000, you have a $3,000 buffer (-1,000$ floating profit + $4,000 daily limit).
However your Balance is starting at $100,000, and violation will occur if you realize -$4,000 loss