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What is the Maximum Daily Drawdown Limit?
What is the Maximum Daily Drawdown Limit?
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Written by FundedNext
Updated over a week ago

For Evaluation, Express, and Stellar 2-Step:

Traders are allowed to lose 5% of their initial account balance on any given day as their daily drawdown. If your initial account balance is $100,000, then 5% of the amount is $5000. At any point in a day, if the (running + closed) loss exceeds $5000 it will be considered a daily drawdown rule violation.

For Stellar 1-Step:

Traders are allowed to lose 3% of their initial account balance on any given day as their daily drawdown in the Stellar 1-Step account. If your initial account balance is $100,000, then 3% of the amount is $3000. At any point in a day, if the (running + closed) loss exceeds $3000, it will be considered a daily drawdown rule violation.

To get more information regarding how the daily loss limit is calculated, kindly click here

Please refer to the image below for details about the daily drawdown:

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