Risk & Drawdown
Daily Loss Limit
The most you may lose in a single day. A soft limit locks you out for the rest of the day; a hard limit fails the account outright.
In plain English
The daily loss limit (DLL) caps single-day damage separately from the overall drawdown. Firms enforce it two ways: a soft breach flattens your positions and blocks trading until the next session, while a hard breach terminates the account like a drawdown hit.
Some firms have no daily limit at all, which traders who size aggressively tend to prefer, though it removes a guardrail that saves accounts from tilt days.
- On a $50,000 account with a $1,100 soft DLL, losing $1,100 by 10am flattens you for the day but the account survives.
- With a hard DLL the same morning ends the account.