The same 5% measured three ways
This example day starts after a losing stretch: the closed balance at server midnight is $49,200 and a trade carried over shows -$300, so start-of-day equity is $48,900. The table applies a 5% daily limit to that day. “Room” is the start-of-day equity minus the floor, before any new trade.
| Method | Reference | Allowance | Floor today | Room |
|---|---|---|---|---|
| 1. % of the initial balance, from start-of-day balance | $49,200 | $2,500 | $46,700 | $2,200 |
| 2. % of the start-of-day balance | $49,200 | $2,460 | $46,740 | $2,160 |
| 3. % of the start-of-day equity | $48,900 | $2,445 | $46,455 | $2,445 |
These figures only show the arithmetic. They are not a recommendation of any limit, position size or number of trades; your account’s own rules decide which line applies.
What changes on a $50k account below its starting size
On a $50k account a 5% daily limit is $2,500 when it is taken from the initial balance. When the account is under water, the start-of-day methods shrink with it: from a $49,200 balance the allowance is $2,460, and from $48,900 of equity it is $2,445. The differences are small in money but they decide whether a last trade fits. Half a lot of gold, at 100 ounces per lot, moves $50 for every $1 in price, so $55 of allowance is about a $1.10 move.
One bad day on gold
A stop is a request, not a promise: on news or in a fast market the fill can be several dollars away, so the real loss can be larger than planned.
Related
Change any field in the calculator above, or open the full daily loss calculator. If you want the limit held on your MetaTrader 5 account automatically, see the free MT5 Daily Loss Lock.