TLDR:
In Stellar Instant Accounts, the maximum loss limit follows a trailing method. It increases when you make profits and always stays at the highest level it has reached, capped at the account’s initial balance. After a withdrawal, the maximum loss limit does not reset lower; it continues at its strongest point. Depending on the withdrawal size, your equity may align more closely with the maximum loss limit, and in some cases, withdrawing the entire profit can bring your account right to that level.
The maximum loss limit in Stellar Instant is set at 6% below the initial balance. For a $5,000 account, this means the starting maximum loss limit is $4,700.
As you build profits, the limit moves upward step by step:
If your highest profit is $200, then the maximum loss limit will be $4,900 ($4,700 + $200).
If you then lose $100, the limit stays at $4,900. Losses do not bring the limit down.
If your newest highest profit is $300, the limit moves to $5,000. Since the trailing maximum loss limit cannot go above the initial balance, it stays capped there. For more, click here.
Withdrawal Scenarios:
Scenario 1: Withdrawing the full profit at the cap
Suppose your balance grows to $5,500 (a $500 profit). The maximum loss limit is already capped at $5,000. If you withdraw the full $500, your balance goes back to $5,000, which equals the maximum loss limit. At this point, the account will be breached.
Scenario 2: Withdrawing part of the profit
If you withdraw $300 while your balance is $5,500, your new balance is $5,200. The maximum loss limit remains at $5,000, leaving you a comfortable $200 buffer to continue trading.
Scenario 3: Withdrawing when the limit has not yet reached the cap
Let’s say your $5,000 account grows by $200, making the balance $5,200. The maximum loss limit has moved up to $4,900. If you withdraw the $200 profit, the balance returns to $5,000, which is still $100 above the maximum loss limit. Your account remains fully safe and active.
Scenario 4: Next cycles
After any withdrawal, a new trading cycle begins. Profits earned in the new cycle will continue to lift the maximum loss limit from its last highest point. For example, if your maximum loss limit is $4,900 after withdrawal and you earn another $10, it will count as the new highest balance, and the maximum loss limit moves to $4,910, and so on.
Key Takeaway:
The maximum loss limit always progresses upward with your highest profit and never decreases.
It is capped at the initial account balance.
Withdrawals simply bring your balance closer to the maximum loss limit, making thoughtful profit planning important for smooth trading.
Partial withdrawals provide a healthy space above the maximum loss limit, allowing you to continue trading confidently.