TLDR: Stellar Instant Accounts have no daily loss limit but use a trailing maximum loss limit of 6%. This starts from your initial balance and moves up only when you make profits, never exceeding your starting balance. Losses do not reduce it. If your equity falls below this limit, your account is breached. The rule is designed to encourage steady growth while preventing excessive losses.
There are no Daily Loss Limits in Stellar Instant Accounts. However, there is a Maximum Loss Limit of 6%, which follows the trailing loss limit method.
Trailing Maximum Loss Limit (How It Works)
Let’s break it down with an example:
Account Size: $10,000
Initial Trailing Maximum Loss Limit (6%): $600
This means if your equity drops below $9,400, your account will be breached.
Trade-by-Trade Example
1st Trade:
You made a $200 profit.
New balance: $10,200
MLL level = $10,200 - $600 = $9600; Greater than the current trailing MLL
Trailing Maximum Loss Limit: $9,600
2nd Trade:
You lost $100.
New balance: $10,100
MLL level = $10,100 - $600 = $9500; Not greater than the current trailing MLL
Maximum Loss Limit stays at $9,600
Losses do not change the Maximum Loss Limit—it only grows with profit.
3rd Trade:
You made a $400 profit.
New balance: $10,500
MLL level = $10,500 - $600 = $9,900; Greater than the current trailing MLL
Maximum Loss Limit rises to $9,900
4th Trade:
You made a $600 profit.
New balance: $11,100
MLL level = $11,100 - $600 = $10,500; Greater than the current trailing MLL
Maximum Loss Limit rises to $10,000.
The Maximum Loss Limit range will not go over your account's initial balance. So your Maximum Loss Limit is now $10,000.
Important Rule:
Even if you keep making profit, your trailing Maximum Loss Limit can never go above your initial balance, which is $10,000. So, even though the calculation showed $10,500, the actual Maximum Loss Limit is capped at $10,000. The Maximum Loss Limit does not reset after receiving a performance reward.
This system is designed to reward steady performance while protecting you from excessive losses.