Does FundingPips's Maximum Daily Loss include unrealized losses from open positions?

Yes, FundingPips includes both realized losses from closed trades and unrealized losses from open positions when calculating your daily loss. Your account equity must not drop more than 5% from the daily starting balance, regardless of whether positions are open or closed.

What happens if I breach the Maximum Daily Loss?

If you breach the 5% Maximum Daily Loss limit, your account will be immediately terminated and you will lose access to the trading platform. This applies to both Challenge and Funded account phases, and there is no grace period or appeal process for this violation.

When does FundingPips reset the Maximum Daily Loss limit?

The Maximum Daily Loss limit resets at the start of each new trading day based on your account's starting balance for that day. The reset typically occurs at 5:00 PM EST (New York close), and your daily loss calculation begins fresh from your new starting equity balance.

Is Maximum Daily Loss calculated from balance or equity?

FundingPips calculates the Maximum Daily Loss from your account equity, not your balance. The 5% limit applies to the difference between your starting equity at the beginning of the trading day and your current equity, including the impact of any open positions' unrealized profit or loss.

Updated 2026-03-08

FundingPips Maximum Daily Loss Rule Explained

FundingPips

Quick Answer

FundingPips's Maximum Daily Loss limit is 5% of the account balance per trading day.

The 5% daily loss is calculated from your starting account balance and includes both realized losses and unrealized losses from open positions. If your account equity drops by 5% or more in a single trading day, you will immediately breach this rule and lose access to your account.

Key Rule Details

Limit

Dollar Value ($100,000)

$5,000

Includes

Open + Closed P&L

Resets

Daily

Breach

Account terminated

Calculation Example

Account Size: $100,000 — Maximum Daily Loss: $5,000

Account Size	$100,000
Maximum Daily Loss Limit	$5,000
Scenario: Closed P&L	$-1,400
Scenario: Floating P&L	$-2,600
Total Exposure	$-4,000
Remaining Buffer	$1,000

Limit used:80%

Common Mistakes

Ignoring Unrealized Losses

Traders often think only closed trades count toward the daily loss limit, but FundingPips includes floating losses from open positions. On a $50,000 account, if you have $2,000 in closed losses and $1,500 in unrealized losses, you've already breached the $2,500 daily limit even without closing the losing trade.

Weekend Gap Confusion

Some traders forget that gaps over weekends can immediately trigger the daily loss rule when markets open. If you hold positions over the weekend on a $100,000 account and markets gap down causing $5,500 in unrealized losses at open, you've instantly breached the 5% daily limit.

Multiple Small Position Accumulation

Traders take several small losing positions thinking each is manageable, but they accumulate quickly. On a $25,000 account, taking five trades with $300 losses each totals $1,500, already 60% of your $1,250 daily limit before considering any additional trades.

News Event Overexposure

Traders increase position sizes during high-impact news, not accounting for increased volatility against their daily limit. A normally safe 1% risk per trade becomes dangerous when news volatility can triple normal price movements, quickly eating into your 5% daily allowance.

Protection Strategies

Set Personal Daily Loss at 3%

Create your own daily loss limit at 3% of account balance, giving yourself a 2% buffer before hitting FundingPips's 5% rule. On a $50,000 account, stop trading when you're down $1,500 instead of waiting until the $2,500 firm limit.

Risk Maximum 1% Per Trade

Limit each trade to 1% risk maximum, ensuring you need at least 5 consecutive losses to breach the daily limit. This position sizing gives you multiple opportunities to recover while staying well within the 5% daily boundary even with several losing trades.

Enable Real-Time Equity Alerts

Set up alerts when your account equity drops by 3% and 4% during the trading day. These early warnings give you time to close positions or reassess your trading before approaching the 5% maximum daily loss limit.

Avoid Trading After 2% Daily Loss

Stop all trading activities once you've lost 2% of your account in a single day, regardless of opportunities. This conservative approach protects you from emotional revenge trading and volatile market conditions that could quickly push you to the 5% breach level.

Related Rules

Maximum Total Loss

10%

→

Profit Target (Phase 1)

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Profit Target (Phase 2)

FundingPips Comparisons

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Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on FundingPips's official website before purchasing a challenge. Updated 2026-03-08.