Is there a daily loss limit?
Challenge Edge and Direct Pass have a 2% daily loss limit. Reaching it pauses trading until the next session.
Updated November 1, 2026
It depends on your program. The daily loss limit is the maximum you can lose in a single trading session.
Daily loss limit by program
| Program | Daily loss limit |
|---|---|
| Challenge Flex | None |
| Challenge Edge | 2% of the account size |
| Direct Pass | 2% of the account size |
| Freedom | None |
| Livex | Same as the Challenge it comes from |
Amounts by account size
| Account size | Daily loss limit (2%) |
|---|---|
| 10K | $200 |
| 15K | $300 |
| 25K | $500 |
| 50K | $1,000 |
| 100K | $2,000 |
| 150K | $3,000 |
How it is calculated
- The daily loss is measured from your balance at the start of the session.
- It includes closed trades, commissions and the result of your open positions.
- It resets at the start of each new session (17:00 Chicago time).
What happens if I reach it?
Reaching the daily loss limit does not breach your account. Your open positions are closed and trading is paused until the next session. When the new session opens, you can trade again normally.
Keep in mind that the maximum drawdown still applies at all times. If a loss reaches your drawdown limit, the account is breached, even if the daily loss limit has not been reached.
Example on a 50K Edge account: you start the session at $51,000. Your daily loss limit is $1,000, so if your equity falls to $50,000, trading is paused until the next session.