Daily loss limits, explained

Start with the midnight baseline

At midnight UTC, compare account balance with account equity. The higher number becomes the baseline for the new trading day. Balance records closed results and booked charges. Equity also reflects the current result of open positions, so an unrealised gain can set a higher baseline than the balance.

For a hypothetical midnight balance of $100,000 and equity of $102,000, the baseline is $102,000. Applying the flagship 5% daily percentage gives $5,100 of allowance and a floor of $96,900. These are worked examples, not a representation of a trader's results.

An open gain can use room when it disappears

Suppose the open position in that example gives back its $2,000 gain after midnight and equity returns to $100,000. The daily floor does not move back down because the baseline has already been set. The account has used $2,000 of that day's room even though the balance may look unchanged from the previous evening.

That is why carrying a position across the reset deserves a separate check. Read the new baseline and recalculate room after midnight; do not copy yesterday's dollar allowance into today's plan. A position that was comfortable before the reset can leave less room afterwards without any new order being opened.

Floating losses count before you close

The risk check does not wait for your preferred exit or the day's final balance. If equity falls below the daily floor while a position is open, the rule has been crossed. Closing the trade later at a better price does not undo the event. Watch account equity and the platform's rule readouts together.

Include execution costs in your buffer. Commissions, spread changes and overnight charges can affect equity or booked results, depending on the platform's treatment. A plan that aims to stop exactly at a contractual floor leaves no room for those changes or for a different execution price during a fast market.

Daily and maximum loss can bind at different times

The flagship maximum loss is 10% static. From a $100,000 start, its overall floor is $90,000. A day's baseline can make the daily floor higher than that overall line, in which case the daily rule is the nearer constraint.

Later in a drawdown, the maximum-loss floor can become the nearer limit. Before sizing a new idea, calculate the distance to both floors and use the smaller remaining room as a constraint. Neither allowance resets losses already taken under the other rule. A protective automatic close is also a separate mechanism, not extra daily capacity.

Use a three-number pre-session check

Record today's baseline, today's daily floor and current equity. Then note the maximum-loss floor and the risk already open. A personal daily stop can sit comfortably above the nearer account boundary; the appropriate distance depends on your tested execution and costs, not a universal percentage supplied by a blog.

If the dashboard and your calculation disagree, stop adding exposure and resolve the difference. Check time zone, open positions and charges before assuming a display error. Keep a timestamped record for support. The detailed daily-loss help article provides the programme table alongside the calculation.

Key takeaways

• Use the higher midnight UTC balance or equity as the baseline.
• A floating gain carried through midnight can raise the next day's floor.
• Plan below your own stop, with room before both contractual loss floors.

Sources and rule check

MultiFunded-specific details were checked against the programme configuration and rulebook on 23 October 2026. Read the conditions attached to your own account before trading; educational examples do not predict results.

• MultiFunded programme comparison — current phase targets and programme limits.
• MultiFunded trading rules and Terms — definitions, restrictions and reward conditions.