FTMO's daily loss limit is the single most common reason funded evaluations fail — not because traders can't trade, but because they miscalculate it under pressure or don't track it in real time.
Part 1. How the Daily Loss Limit Works
FTMO sets a maximum daily loss (commonly 5% of the initial account balance, depending on account type), calculated from your equity at the start of the trading day — not your starting account size overall. Hit it, and trading for that day is disabled, with a full breach potentially failing the evaluation entirely.
Part 2. The Detail Most Traders Get Wrong
The daily loss is measured against your day's starting equity, including floating (unrealized) losses on open positions — not just closed-trade P&L. A trader who's up on paper but has a large floating loss on an open position can be closer to the limit than their closed-trade P&L alone would suggest.
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Try the Void Engine Free →Part 3. Common Ways Traders Accidentally Breach It
- Holding a losing position overnight into a gap, not accounting for the new day's calculation resetting against a lower starting equity.
- Adding to a losing position ("averaging down") without recalculating the total floating risk against the daily limit.
- Trading during high-volatility news events without checking how much room remains before the limit.
- Simply losing track of the running number during a stressful session.
Part 4. Stop Calculating This Manually Mid-Session
The daily loss limit is exactly the kind of number that gets miscalculated under stress — here's how to remove that risk:
- Add your FTMO account to TRADZY's Prop Firm Tracker, which recalculates your live daily loss (including floating P&L) automatically.
- Get a clear real-time view of exactly how much room remains before your limit, updated as positions move — not just at day's start.
- Set your own internal buffer inside TRADZY below FTMO's actual number, so you get an early warning before the real threshold.
Part 5. How to Trade Safely Under a Daily Loss Limit
Set your own internal stop well before FTMO's actual limit — a common approach is trading as if the limit were 60-70% of the real number, so normal volatility doesn't put you at real risk of a full breach. Recalculate your remaining daily room at the start of every session, not just when you remember to.
FAQ
Is FTMO's daily loss limit based on starting balance or current equity?
It's calculated from your equity at the start of that specific trading day, including floating losses on open positions — not the account's original starting balance.
Does a floating loss on an open trade count toward the daily limit?
Yes — unrealized losses on open positions count toward your daily loss calculation, not just closed-trade results.
What happens if I breach the daily loss limit?
Trading for that day is typically disabled, and depending on the severity, it can result in failing the evaluation or funded account entirely — check your specific account's exact terms.
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