What is Daily loss limit?

A daily loss limit caps how much a trading account can lose in a single day. Prop firm challenges set a limit alongside maximum drawdown, and going past it typically closes the account straight away rather than waiting for the wider drawdown limit.

The levels set here sit close together. Eightcap allows 4% to 5%, City Traders Imperium allows 5% and Alpha Capital Group allows 3% to 5%. Blue Guardian allows 3% to 4% on its standard account rules, while Earn2Trade is tighter again at 2.2%.

Think of it as a brake on a bad day. It decides how much room you have to be wrong before the day is over.