---
title: "Daily loss limit - Meaning & GFN's Figure - Get Funded Now"
description: "The most an account may lose in one trading day before it breaches. Calculated as a percentage of the previous day's closing level, it resets at a fixed…"
url: "https://getfundednow.com/glossary/daily-loss-limit"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/daily-loss-limit"
  pt-BR: "https://getfundednow.com/pt-br/glossary/daily-loss-limit"
  fr: "https://getfundednow.com/fr/glossary/daily-loss-limit"
  it: "https://getfundednow.com/it/glossary/daily-loss-limit"
  de: "https://getfundednow.com/de/glossary/daily-loss-limit"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Drawdown and risk limits

# Daily loss limit

The most an account may lose in one trading day before it breaches. Calculated as a percentage of the previous day's closing level, it resets at a fixed time each day and is the rule that ends most evaluations.

Also called: Daily drawdown · DLL · Max daily loss

GFN’s figure

GFN's daily loss limit is 3% on Instant - the tightest of the three - and 5% on both the 1 Step and the 2 Step.

- **Instant Daily loss limit**: 3% ($3,000 on $100,000)
- **1 Step Daily loss limit**: 5% ($5,000 on $100,000)
- **2 Step Daily loss limit**: 5% ($5,000 on $100,000)

A 2 Step retake runs on a tighter 3% daily loss limit.

In detail

## Daily loss limit, explained

The daily loss limit is a hard stop for the session rather than a warning. Crossing it for a few seconds is enough, and a market that recovers afterwards does not undo the breach. It is separate from maximum drawdown, and it is possible to breach either one without touching the other.

Because it is a percentage of the prior day's close, it moves with the account: a profitable run widens tomorrow's daily allowance, and a losing day narrows it. Commission, spread and slippage all come out of the same allowance.

Worked example

Start the day on a $100,000 2 Step account and equity reaching $95,000 breaches it - a $5,000 loss, including commission, and including anything floating on an open position.

[The rule in full →](https://getfundednow.com/rules/daily-loss-limit) · [Rules handbook](https://getfundednow.com/rules) · [More drawdown and risk limits](https://getfundednow.com/glossary/category/drawdown)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Maximum drawdown](https://getfundednow.com/glossary/maximum-drawdown) - The total loss an account may take before it is failed. Expressed as a percentage of the starting balance, it sets a floor: touch it and the account breaches, whatever the account has made up to that point.
- [Intraday drawdown](https://getfundednow.com/glossary/intraday-drawdown) - The worst point an account reaches during a single trading day, measured from that day's starting level. It is what a daily loss limit monitored on equity actually tests, rather than where the day happens to finish.
- [Drawdown reset](https://getfundednow.com/glossary/drawdown-reset) - The moment a drawdown calculation is recalculated from a new reference level - most often the daily loss limit rolling over to a new day, or an account level being restated after a withdrawal.
- [Hard breach](https://getfundednow.com/glossary/hard-breach) - A violation serious enough to fail or terminate the account immediately. Exceeding the daily loss limit or the maximum drawdown is the usual cause, and a later recovery in the market does not reverse it.
- [Position size](https://getfundednow.com/glossary/position-size) - How many lots a trade is placed in. It is calculated from the dollar amount being risked and the stop distance, not chosen first - which is the reverse of how most traders approach it.

Also governed by [/rules/daily-loss-limit](https://getfundednow.com/rules/daily-loss-limit)

[Equity-based drawdown](https://getfundednow.com/glossary/equity-based-drawdown) · [End-of-day drawdown](https://getfundednow.com/glossary/end-of-day-drawdown) · [Rollover time](https://getfundednow.com/glossary/rollover-time)

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Source: https://getfundednow.com/glossary/daily-loss-limit
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt