WickCheck / Trading school / Daily loss limit
Daily loss limitDaily drawdownBeginner
The most you can lose in one day before the account fails, often 4–5%.
What it means
Firms measure it from the day's starting balance or equity, including open trades. Three full losses at 1.5% can already break a 4% limit.
How to spot it
- Check how your firm measures it and when the day resets.
Common mistakes
- Forgetting open losses count toward the limit.
Related terms
Maximum loss limitThe total loss allowed from the starting balance, often 8–10%.…DrawdownThe fall from an account's peak to its lowest point before a new peak. Max drawd…Position sizingChoosing the trade size so a stop-out costs a fixed amount, usually a small % of…
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Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.