Our daily loss limit specifies that you are permitted to lose 5% of your initial account balance on any given day.

So here is how the calculation works:

Your daily loss limit = the sum of your open and close positions for the day.

This implies that on that specific day, this number should not exceed 5% of your initial account balance.

For example, if you have a $100,000 account, the maximum daily loss limit is $5,000, and you are not allowed to lose more than $5,000 on any given day. Suppose you have lost a total of $3000 in your closed trades. In such a case, you cannot lose more than $2000, including floating losses. Note that swap and commission rates are included in this calculation. If you lose more than $2000, it will be considered a violation.

Similarly, let's say you gained $5,000 in profit in a single day. In such case, you will be allowed to lose $5,000 (your profit) + $5,000 (your daily loss limit) = $10,000. Loosing more than $10,000 (in both open and closed positions) will be considered a violation.

Let's look at another case. Assume, like in the previous scenario, that you lost $3000 in a single day. Then you take a trade that is now running at a floating loss of -$2500, but when you close it, it becomes positive $500. If this occurs, according to our calculations, you will have exceeded your daily loss limit the instant your loss exceeds $5000.

Another thing to keep in mind is that your daily loss limit will be reset at midnight according to the server time. As an example, suppose you have gained a $2000 profit in a closed trade and you have a trade that is currently running in -$6000 floating loss. In this case, you still have not violated your daily drawdown for the day because your current daily loss is +$2000 - $6000= -$4000. However, if you hold this one trade with a floating loss of $6000 after midnight, you will breach the daily loss limit because a new day begins after midnight and you have already lost $6000, which is more than your daily loss limit of $5000.

You are allowed to have an overall maximum loss limit of 10% of your initial account balance. Thus, at any time during your whole trading journey, your account balance/equity can't go below 90% of initial balance. It implies that your account balance/equity should be always over 90% of initial balance to avoid rules violation.

In FundedNext, we want to make things easier for our traders. For this, you only need to take a minimum of 05 individual and separate trades in each trading cycle. You must enter a new trade on at least 05 separate days in the evaluation model. But you can relax, your trading days do not need to be consecutive, and to make things even easier, there is no maximum number of trades that you need to take each trading cycle, as long as you do not exceed your risk.

Leverage for trading account.

You are eligible to get back your registration fee once you are a funded trader with FundedNext.