Maximum Loss Limit
The Maximum Loss Limit at FTUK Futures is the total loss permitted before an account is permanently breached. This limit operates using a Trailing (Relative) system, which updates based on the highest balance achieved and never decreases. If the account balance falls below this limit, the account is considered breached.
How Does the Maximum Loss Limit Work?
It establishes the minimum equity level a trader must maintain to avoid breaching the account. The limit trails upward as the account balance grows, but never decreases after losses.
Max Drawdown Limits by Account Size
Starting Balance | Maximum Drawdown |
$50,000 | $2,000 |
$100,000 | $3,500 |
$150,000 | $5,000 |
How the Maximum Loss Limit Adjusts Over Time
EXAMPLE
A trader starts with a $50,000 account and a Maximum Loss Limit of $2,000, meaning the balance must not fall below $48,000 initially.
Day 1:
The trader makes a profit of $1,000, increasing the balance to $51,000.
At EOD, the new Maximum Loss Limit becomes:
$51,000 − $2,000 = $49,000
Day 2:
The trader earns another $2,000, raising the balance to $53,000.
At EOD, the Maximum Loss Limit is recalculated:
$53,000 − $2,000 = $51,000
Day 3:
The balance drops by $2,000 to $51,000.
If the balance has fallen below $51,000, the account would be permanently breached.
Key Takeaways
Trailing EOD System: The Maximum Loss Limit increases with profits and never decreases after losses.
Hard Breach: If the account balance reaches or falls below the Maximum Loss Limit, the account is permanently breached.
EOD Updates Only: The limit adjusts at the end of each trading day based on the highest balance achieved. It does not change in real time. However, if your floating loss reaches the Maximum Loss Limit during an active trade, the account will breach immediately.
Tip: To manage the FTUK Futures Maximum Loss Limit effectively, monitor your balance daily, apply strong risk management, and size positions carefully to stay within limits while growing your account.