The Daily Loss Limit at FundedNext Futures Legacy Challenges is the maximum loss allowed in a single day. If hit, trading is disabled until the next day. It includes both closed and floating losses, broker commissions, and fees.
Note: There is no Daily Loss Limit in the FundedNext Futures Rapid Challenge.
The Daily Loss Limit is the maximum amount you’re allowed to lose in a single trading day. It resets to its original amount each new day, regardless of previous profits or losses.
At FundedNext Futures, exceeding this limit is considered a soft breach. Trading access will be temporarily disabled for the rest of the day and automatically restored the next day.
How Does the Daily Loss Limit Work?
If a trader's total loss (including both closed losses and floating losses) reaches the Daily Loss Limit, trading will be disabled for the rest of the day.
Daily Loss Limit for FundedNext Futures applies equally to both the Challenge and the FundedNext Account. [Not applicable for Rapid Challenge and FundedNext Account.]
Daily Loss Limits by Account Size
Account Size | Daily Loss Limit |
$25K Account | $600 |
$50K Account | $1,200 |
$100K Account | $2,400 |
Important Considerations
Floating Losses Count: FundedNext Futures Daily Loss Limit includes floating (unrealized) losses. If an open trade moves into a loss and hits the limit, the system will disable trading, even if the trade has not been closed.
Daily Loss Limit Calculation
When calculating the Daily Loss Limit, the following components are considered:
Commissions (per side/contract)
Regulatory and Exchange Fees (round-turn)
Profit/Loss from both closed and running trades
How to Calculate Daily Loss Limit in FundedNext Futures Legacy Challenge?
Case 01:
If you have a $100,000 Challenge, your Daily Loss Limit is $97,600. If your equity reaches $97,600 or lower, your account will experience a soft breach.
Balance: $100,000
Daily Loss Limit: $97,600
Permitted Loss: $2,400
If you have a loss of $1,500 from closed trades, you can still have up to $900 in floating or unrealized losses from your open trades for the rest of the day. If a trader hits the Daily Loss Limit, their account will experience a "soft breach," and trading will be disabled for the remainder of the day. The limit will reset at the start of the next trading day.
Case 02:
If you have a $100,000 Challenge, your Daily Loss Limit is $97,600. If your equity reaches $97,600 or lower, your account will experience a soft breach.
Start of Day 1:
Balance: $100,000
Daily Loss Limit: $97,600
Permitted Loss: $2,400
If you incur $500 in closed trade losses during Day 1, the calculation works as follows:
Before Day 1 Ends:
Balance: $99,500
Daily Loss Limit: $97,600
Permitted Loss: $1,900
On Day 2, your remaining permitted loss resets to $2,400.
Case 03:
If you have a $100,000 Challenge, your Daily Loss Limit is $97,600. If your equity reaches $97,600 or lower, your account will experience a soft breach.
Start of Day 1:
Balance: $100,000
Daily Loss Limit: $97,600
Permitted Loss: $2400
Imagine, on Day 1, you experience $1500 in profit from your closed trades.
Before Day 1 Ends:
Balance: $101,500
Daily Loss Limit: $97,600
Permitted Loss: $3900
In Futures, the loss limit follows a trailing system. The Maximum Loss Limit is calculated from the highest balance reached. In this case, it would be $101,500 minus $2,400, setting the Maximum Loss Limit at $99,100.
On Day 2, remaining permitted loss resets to $2400.
The examples provided offer traders a comprehensive understanding of potential scenarios, enabling them to navigate the rules effectively. By applying this knowledge, traders can better manage risk and increase their chances of success.