GLOSSARY · PROP FIRMS
What is Daily Loss Limit?
A daily loss limit is the most you allow yourself (or a prop firm allows you) to lose in one day.
Hitting it means you stop trading for the day — no exceptions. It prevents a bad morning from turning into a blown account, and most prop firms enforce one automatically.
EXAMPLE
With a $1,000 daily loss limit, three −$350 trades end your day after the third.
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