The maximum total loss is the total amount that a trader can lose in their account. The maximum allowable total loss in your account is 8%.
For example, in a $100,000 account, the maximum total loss is 8% of your initial balance = $8,000. Your equity, including unrealized/floating positions, must not fall below $92,000.
What Is the Maximum Total Loss?
Understanding the Maximum Total Loss Limit

Written by Fundex Plus
Updated this week