Loss limits, in general, are designed to provide proper risk control and a stopping point if you are having a bad trading day. Losing trading days are inevitable, and being able to have a fixed stopping point will allow you to “live to trade another day.”
The daily loss limit is defined as the largest amount an account size can decrease from the day’s starting balance.
The daily loss limit is inclusive of all your trades, including commission/slippage that may occur.
The daily loss limit is a cumulative total for all instruments traded.
For Futures, the trading day is defined as 5:00 pm to 3:10 PM CST
For Stocks, the trading day is defined as:
Cash session (8:30 am – 3:00 pm CST) and the Swing session (3:00 am – 7:00 pm CST).
For Options, the trading day is defined as:
Cash session (8:30 am – 3:00 pm CST) and the Swing session (8:30 am – 3:15 pm CST).
(Note: Swing trading, as defined for options, is that you can hold over to the next day. However, you cannot trade those positions until the opening of the cash session.)
At any point that the daily loss limit has been hit or exceeded, your trade(s) and the trading account can be automatically liquidated and disabled without notice. This account will no longer be eligible for funding.
Additionally, even if the account is not automatically disabled/liquidated, the daily loss limit will still be “hit,” and your account will no longer be eligible for funding.If you are using NinjaTrader, by default, your PnL totals DO NOT deduct commission in the performance summary section of the trade reporting. It is therefore recommended to use the TradeFundrr dashboard to monitor your trades for commissions and total balance.