3 linked sources · Published Oct 24, 2026
A loss limit is a calculation, not just a percentage
A prop program’s maximum loss figure is incomplete without knowing the reference value and the breach condition. A static boundary is anchored to the initial account; a trailing boundary can move upward as performance improves. A daily limit adds another clock. To compare two accounts, write down the floor in currency, what can move it, and whether touching it or crossing it causes a breach. This turns a marketing percentage into an operational rule.
A static floor remains tied to the starting account
FTMO’s detailed 2-Step objectives describe a maximum loss amount equal to 10% of the initial simulated capital, with a static floor. Its daily loss calculation is separate and resets at midnight Central European time, using equity that includes open positions and trading costs. A static total-loss floor therefore does not mean every other risk boundary is fixed throughout the day. The account can be subject to both constraints simultaneously, so both must be checked before increasing exposure.
End-of-day trailing does not postpone enforcement
Topstep’s Maximum Loss Limit guide explains that its threshold follows end-of-day balance upward and never moves downward. It can stop trailing when it reaches the starting balance. The same guide says the limit is enforced during trading, including unrealized profit and loss. Thus, end-of-day refers to the threshold’s adjustment process; it does not authorize ignoring an intraday loss. A trader needs the current threshold before placing the order, not only when reviewing the evening statement.
Equity trailing can react before a trade is closed
FundingPips Zero uses a different reference: its official guide says the trailing floor follows the highest recorded equity, remaining a fixed amount equal to 5% of the initial size below that high until it locks at the starting size. Because equity includes an open position, an unrealized gain can affect the boundary before that gain is banked. This is why the words balance and equity are not interchangeable when comparing trailing-loss rules across programs.
A withdrawal is another risk event to model
Topstep’s guide says the first Express payout sets its Maximum Loss Limit to zero, leaving the remaining positive balance as the effective cushion. FundingPips Zero says its trailing floor does not reset after a reward. The details differ, but the review question is the same: what will the usable gap be after the requested money leaves? Calculate that gap using the applicable rule before submitting a withdrawal. The maximum eligible request is not necessarily the amount compatible with the next trade.
- Trading Objectives FTMO
- What is the Maximum Loss Limit? Topstep · 2026-09-18
- FundingPips Zero FundingPips
Sources checked for this edition on Oct 24, 2026. Program terms and market data can change after publication.
For education and information only. This article is not a recommendation to buy, sell or trade. Prices and events are tied to the dates stated.
