Summary
Daily Loss Limits are an essential part of MegaTrader’s funded account risk management system. They help protect traders and the firm from excessive single-day losses while promoting consistent, disciplined trading. This article explains how Daily Loss Limits are calculated, when they apply, and what happens if they are breached.
What Is a Daily Loss Limit?
A Daily Loss Limit (DLL) sets the maximum amount you can lose in a single trading day before your account is flagged for risk review or temporarily restricted.
The limit resets at the start of each new trading day and is calculated based on your account size.
Daily Loss Limit Table
Account Size | Daily Loss Limit (Soft Breach) |
$25,000 | $500 |
$50,000 | $1,250 |
$100,000 | $2,500 |
$150,000 | $3,750 |
How It Works
The system continuously tracks your realized and unrealized PnL throughout the trading session. If your losses exceed the Daily Loss Limit, your dashboard will display a soft breach alert. This does not automatically fail your account but serves as a warning to stop trading and reassess your risk exposure. In some cases, trading may be restricted for the remainder of the day or flagged for compliance review. During high market volatility, positions may be liquidated promptly upon breaching the limit. However, due to rapid market movements, the account's profit and loss (PnL) may surpass the threshold before all positions are fully closed. This can lead to marking the account as breached and may result in its subsequent removal from the platform.
The Daily Loss Limit resets every trading day, allowing traders to start fresh each session while maintaining strict daily discipline. If the daily loss limit is reached, trading sessions will resume on the next trading day and will be open until 6 pm.
When Is It Evaluated?
The Daily Loss Limit is monitored in real time between 6:00 PM EST and 5:00 PM EST the next day. If the limit is breached during that window, your dashboard will immediately reflect the warning or restriction. While trading can continue the next session, repeated breaches can affect payout eligibility or compliance standing. Trading can resume during the next trading day session and is available until 6 pm.
Plans That Include Daily Loss Limits
Plan | Daily Loss Limit Policy |
Elite Plan | No daily loss limit. Risk is managed through a real-time trailing drawdown. |
Growth Plan | No daily loss limit. Uses an End-of-Day trailing drawdown. |
Funded Plan | Includes a Daily Loss Limit as a soft rule, varying by account size. |
Why It Matters
Daily Loss Limits are designed to:
Encourage responsible risk management
Prevent severe losses caused by emotional or impulsive trading
Allow traders to recover without full account termination
Maintain fairness and funding stability for all participants
These limits are part of MegaTrader’s broader mission to fund traders who demonstrate consistency, control, and long-term profitability.