Daily loss limit

How it works

Three variants exist in 2026. A hard breach closes the account permanently on contact — rare now. A soft breach flattens open positions and locks the account for the rest of the day, then trading resumes tomorrow; this is the current standard. Some plans have no DLL at all, leaving the trailing floor as the only constraint. The limit is usually measured on closed plus open P&L against the day's starting balance.

Why it matters on a funded account

The DLL is the rule that decides how many attempts a strategy gets on a bad day. Two full-size stops plus a re-entry is often the entire allowance, which is why an attempts-per-session cap belongs in the strategy rules rather than in the trader's judgement.

Read next

• Sizing checker
• Re-entry rules
• Trailing vs static vs daily loss

Part of the Puravida Edge prop trading glossary. Firm-specific figures verified September 2026; rules change frequently — confirm on the firm's site.