Does For Traders's Maximum Total Loss include unrealized losses from open positions?

Yes, the 10% maximum total loss includes both realized losses from closed trades and unrealized losses from open positions. Your account equity, not just your realized balance, must stay above 90% of the initial balance.

What happens if I breach the Maximum Total Loss?

You immediately fail the challenge or lose your funded account status. There are no warnings or grace periods - once your equity drops 10% below the starting balance, your account is terminated and cannot be recovered.

Does the Maximum Total Loss reset after profitable days?

No, the 10% maximum total loss never resets and is always calculated from your original starting balance. Even if you make profits on some days, the total loss limit remains fixed at 10% of your initial account value throughout the entire challenge and funded phases.

Is the Maximum Total Loss calculated from balance or equity?

The rule is calculated from account equity, which includes unrealized profits and losses from open positions. This means floating losses on open trades count toward your 10% limit, not just the closed trade balance shown in your account history.

Updated 2026-04-17

For Traders Maximum Total Loss Rule Explained

For Traders

Quick Answer

For Traders's Maximum Total Loss rule allows 10% maximum drawdown from initial account balance.

The rule is calculated from your starting account balance and includes both realized and unrealized losses. If your account equity drops 10% below the initial balance at any point, you immediately fail the challenge or lose your funded account.

Key Rule Details

Limit

10%

Dollar Value ($100,000)

$10,000

Basis

Initial balance

Resets

Never (static)

Breach

Account terminated

Calculation Example

Account Size: $100,000 — Maximum Total Loss: $10,000

Account Size	$100,000
Maximum Total Loss Limit	$10,000
Scenario: Closed P&L	$-2,800
Scenario: Floating P&L	$-5,200
Total Exposure	$-8,000
Remaining Buffer	$2,000

Limit used:80%

Common Mistakes

Ignoring Unrealized Losses

Many traders think only closed trades count toward the 10% limit, but open positions with floating losses also apply. On a $100,000 account, if you have $8,000 in realized losses and $3,000 in unrealized losses from open trades, you've already breached the $10,000 maximum total loss limit.

Miscalculating From Current Balance

Traders often calculate the 10% limit from their current balance instead of the original starting balance. If your $100,000 account grows to $105,000, the maximum loss is still $10,000 from the original balance, not $10,500 from the current balance.

Weekend Gap Risk

Holding positions over weekends can cause gap openings that instantly breach the 10% rule. A trader holding a large EUR/USD position over the weekend could face a gap that pushes their $100,000 account below $90,000 before they can react.

Compounding After Daily Losses

After hitting near the 5% daily loss limit, some traders don't realize how little room remains for the total loss rule. With $4,500 daily loss on a $100,000 account, only $5,500 remains before hitting the total 10% limit across all trading days.

Protection Strategies

Set Personal 8% Maximum Loss Buffer

Create your own stop at 8% total drawdown, giving yourself a 2% cushion before the firm's 10% limit. On a $100,000 account, stop trading when you reach $8,000 in total losses instead of risking the full $10,000 allowed.

Use 1% Risk Per Trade

Limit each trade to 1% risk to prevent large single losses from breaching the rule. With $1,000 maximum risk per trade on a $100,000 account, you'd need 10 consecutive losses to approach the total loss limit, making catastrophic drawdown less likely.

Set Equity-Based Account Alerts

Configure platform alerts when account equity drops to specific thresholds like $95,000 and $92,000 on a $100,000 account. These alerts account for both realized and unrealized losses, giving you time to close losing positions before breaching the 10% rule.

Avoid High-Impact News Trading

Since For Traders only allows news trading during the challenge phase, avoid major news events during the funded phase entirely. High-impact news can cause rapid moves that push accounts beyond the 10% total loss limit before stops can execute effectively.

Related Rules

Maximum Daily Loss

→

Profit Target (Phase 1)

10%

→

Profit Target (Phase 2)

For Traders Comparisons

Fundednext vs For Traders Ftmo vs For Traders Fundingpips vs For Traders The Funded Trader vs For Traders

Frequently Asked Questions

PropSize iOS App

Position sizing without the spreadsheet.

Firm rules built in

FTMO, FundedNext and FundingPips pre-loaded. No manual entry.

Remembers your session

Last firm, account size, and instrument saved between opens.

Works offline

Calculate positions without internet. Gold contract sizes handled.

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on For Traders's official website before purchasing a challenge. Updated 2026-04-17.