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 End-of-Day (EOD) system, which updates daily based on the highest balance achieved but never decreases. Once it locks at the initial balance, it will not increase further. If the balance falls below this limit, the account is considered breached.
How Does the Maximum Loss Limit Work?
It establishes the minimum equity a trader can maintain before their account is permanently breached.
It increases as the account balance grows until it locks at the initial balance, but it never decreases when losses occur.
It updates only at the end of the trading day (EOD), not in real time.
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
Consider a trader who starts with a $50,000 account and a Maximum Loss Limit of $2,000, indicating the account balance cannot drop below $48,000.
Day 1:
The trader begins with a $50,000 balance and makes a profit of $1,000, raising the balance to $51,000.
At the end of the day, the Maximum Loss Limit is calculated:
$51,000 - $2,000 = $49,000.
The Maximum Loss Limit now changes to $49,000.
Day 2:
The trader earns an additional $2,000, increasing the balance to $53,000.
At the end of the day, the Maximum Loss Limit is recalculated:
$53,000 - $2,000 = $51,000.
Since the Maximum Loss Limit has now reached the initial balance of $50,000, it locks in at this amount and will not rise further.
Day 3:
The trader's balance declines by $5,000 to $50,500.
The Maximum Loss Limit remains at $50,000 and does not decrease.
Day 4:
The trader's balance increases by $1,000, reaching $51,500.
At the end of the day, the Maximum Loss Limit remains locked at $50,000, despite the increased balance. It will not increase beyond the initial balance.
🚨 If the trader's balance falls below $50,000 at any time, the account will be permanently breached.
Key Takeaways
Trailing EOD System: The FTUK Futures Maximum Loss Limit increases with profits and locks at the initial balance, never decreasing with losses.
Hard Breach: If a trader's balance reaches the Maximum Loss Limit, the account will be permanently breached.
The Maximum Loss Limit is adjusted only at the end of each trading day based on the highest balance. It does not change in real time. However, if your floating loss reaches the Maximum Loss Limit during an active trade, your account will breach immediately.
Tip: To manage the FTUK Futures Maximum Loss Limit effectively, monitor your account balance daily, implement proper risk management, and plan your trades carefully to encourage growth while staying within limits.