Ask any prop firm's risk team which rule ends the most accounts and the answer is not the maximum loss. It is the daily loss limit — because a maximum loss takes a bad month and a daily limit takes one bad afternoon.
The two ways it gets measured
| Method | What it tracks | Effect on you |
|---|---|---|
| End of day (EOD) | Your closing balance against the day's starting balance | An intraday dip that recovers does not count. Far more forgiving. |
| Intraday equity | Your lowest unrealised equity at any moment | A position that goes against you and then recovers can still breach you. |
FundedAxe measures daily loss end of day, and the maximum loss is static or trailing depending on the path. End-of-day measurement is deliberately the more forgiving of the two options on the daily axis.
The arithmetic that catches people out
On a $100,000 account with a 4% daily limit, you may lose $4,000 in a day. At 1% risk per position that is four full losses. At 2% risk it is two. Traders who size at 2% and take three setups on a bad morning are one adverse session from a breach — and they will describe it as bad luck.
What counts toward the daily loss
- Realised losses from closed positions.
- Under EOD measurement, the net effect of open positions at the daily close.
- Commissions and swaps, which quietly consume buffer on high-frequency strategies.
The FundedAxe daily limits
| Programme | Daily loss limit |
|---|---|
| Pay After Pass 1-Step | 5% (end of day), 3% once funded |
| FundedAxe Pro 1-Step | 4% (end of day) |
| FundedAxe Pro 1-Step Pro | 3% (end of day) |
| FundedAxe Pro 2-Step / 2-Step Pro / 3-Step | 5% (end of day) |
| Instant | 3% (end of day) |
Trade against an end-of-day limit
Intraday noise that recovers does not count against you.
Frequently asked questions
What is a daily loss limit at a prop firm?
The maximum you may lose in a single trading day. Exceeding it breaches the account even if your overall drawdown is well within the maximum loss.
Is end-of-day or intraday daily drawdown better?
End of day is considerably more forgiving. It measures your closing balance, so an unrealised drawdown that recovers before the day closes does not count against you.
What is FundedAxe's daily loss limit?
4% end-of-day on the Pro 1-Step, 3% on the 1-Step Pro, 5% on the 2-Step and 3-Step paths, 5% on the Pay After Pass challenge and 3% on Instant accounts. All are measured on the end-of-day balance.
FundedAxe evaluations and funded accounts are simulated. Traders do not trade real client capital; rewards are paid on simulated performance under the terms of the FundedAxe trader agreement.