Frequently Asked Questions
What is a daily loss limit? ▼
A daily loss limit is the maximum amount you allow yourself to lose in a single trading day. For example, if your account is $100,000 and your daily loss limit is 5%, you can lose a maximum of $5,000 in one day. Once you've lost that amount, you stop trading for the day. Many prop firms enforce this rule — breach it and your account is closed.
How do I calculate my safe position size for today? ▼
Safe position size = Remaining daily budget ÷ (Stop loss in pips × Pip value per lot). For example, if you have $2,000 remaining budget, a 20-pip stop on EURUSD (pip value $10/lot), your safe size = $2,000 ÷ (20 × $10) = 10 lots. This tool calculates the maximum trades you can afford to lose at your risk level.
What happens if I breach my daily loss limit mid-trade? ▼
If your stop loss takes you below the daily limit, you've breached it. In a prop firm challenge, your account may be immediately closed. That's why it's critical to calculate safe position size BEFORE placing a trade, not after. This tool shows you exactly how many trades you can afford to lose at your risk level.
How do I manage risk on high-volatility days? ▼
On volatile days, consider reducing your position size or risk per trade to keep more breathing room. If you've already lost money earlier in the day, your remaining budget is smaller. Use this calculator to see your remaining trades allowed and adjust accordingly. Many pros cut their size in half after a few losses to protect their daily limit.