Fewpips uses two loss limits that work together: a daily loss limit that caps how much you can lose in a single day, and a per-trade limit that caps how much any one trade idea can lose. Breach the daily limit and the account is terminated; breach the per-trade rule and the trade is a violation. This guide shows exactly how both are calculated, with the dollar figures for every account size.
(The third risk limit, the trailing maximum loss limit, has its own breakdown in Understanding Prop Firm Drawdown Rules. This article focuses on the daily and per-trade limits.)
The Daily Loss Limit: Your Single-Day Circuit Breaker
The daily loss limit caps how far your equity can fall within one trading day. It is calculated with a precise formula:
Start-of-day equity minus the lowest floating equity of the day must not exceed the allowed percentage.
Two things to note. First, it is measured on equity, so it counts both closed trades and open floating losses in real time - a trade that has not hit its stop can still breach the limit. Second, it uses the lowest equity point of the day, so a brief dip below the line is a breach even if you recover afterward.
Daily Loss Limit by Account Type
| Account Type | Daily Loss Limit |
|---|---|
| 1-Step Challenge / Funded | 4% |
| 2-Step Challenge / Funded | 4% |
| 3-Step Challenge / Funded | 5% |
| CFD Instant | None |
| Futures (Challenge & Funded) | 4% of start-of-day balance |
Daily Loss Limit in Dollars (1-Step, 4%)
| Account Size | 4% Daily Loss Limit |
|---|---|
| $5,000 | $200 |
| $10,000 | $400 |
| $25,000 | $1,000 |
| $50,000 | $2,000 |
| $100,000 | $4,000 |
On a 3-Step account the same sizes use a 5% daily limit (for example $5,000 on a $100K account). CFD Instant accounts have no daily loss limit - only the trailing maximum loss limit applies.
The Limit Grows If You Bank Profit Intraday
You start the day at $100,000, so your daily loss limit is $4,000 - you cannot drop below $96,000 in equity.
If you first lock in $2,000 of profit, your daily limit effectively rises to $6,000 ($4,000 + the $2,000 you banked), so the floor for the rest of that day moves to $94,000.
Start: $100,000 → Low: $97,200 → loss $2,800 → OK
Start: $100,000 → Low: $95,600 → loss $4,400 → Violation
The Per-Trade Limit: 2% Per "Trade Idea"
Alongside the daily limit, no single trade idea may lose more than 2% of the account starting balance. The clever part is the definition of a "trade idea," which stops the rule being dodged by splitting one position into many small entries:
A "trade idea" means all entries on the same symbol, in the same direction, opened within a 10-minute window. These are treated as one trade, and their combined profit and loss is assessed against the 2% limit.
So three buys on EUR/USD placed within ten minutes of each other count as one trade idea, and their total loss must stay under 2% of your starting balance.
Per-Trade Limit in Dollars (2%)
| Account Size | 2% Per-Trade Limit |
|---|---|
| $5,000 | $100 |
| $10,000 | $200 |
| $25,000 | $500 |
| $50,000 | $1,000 |
| $100,000 | $2,000 |
How the Two Limits Work Together
The per-trade limit controls the size of any one bet; the daily limit controls how many of those bets can go wrong before you must stop for the day. Sizing each trade at around 1% of the account is the simplest way to respect both at once:
Each trade is comfortably inside the 2% per-trade cap.
You could take four full losing trades ($4,000) before reaching the 4% daily loss limit - which means a sensible trader steps away well before then.
How to Trade Safely Inside the Limits
- Set a personal daily stop tighter than the rule. If the limit is 4%, call it a day at 2-3%. The buffer keeps emotion out of decisions near the boundary.
- Watch floating equity, not just closed trades. Unrealized losses count toward the daily limit in real time.
- Respect the 10-minute window. If you scale into a position, remember those entries are assessed together against the 2% cap.
- Avoid high-impact news. News trading is prohibited and is the fastest way to blow through both limits in seconds.
Frequently Asked Questions About Loss Limits
Is the daily loss limit based on balance or equity?
Equity. It is the start-of-day equity minus the lowest floating equity of the day, so open (unrealized) losses count in real time, and the lowest point of the day is what is measured.
Does the daily limit reset each day?
Yes - it is measured from your start-of-day equity each trading day. If you bank profit during the day, the effective limit for that day increases by the amount of realized profit.
What is a "trade idea" for the 2% per-trade rule?
All entries on the same symbol, in the same direction, opened within a 10-minute window. They are treated as one trade and their combined profit and loss is measured against the 2% limit on starting balance.
Does the CFD Instant account have a daily loss limit?
No. CFD Instant accounts have no daily loss limit - the trailing maximum loss limit is the governing risk rule. Futures accounts do use a 4% daily limit on start-of-day balance.
What happens if I breach the daily loss limit?
The account is terminated immediately, on both challenge and funded accounts. Because it is calculated on equity at the lowest point of the day, a floating loss that dips past the limit triggers it even if the trade is still open.
Loss limits are not there to make trading harder - they are the same risk discipline every professional uses, written into the rules. Size each trade modestly, watch your floating equity, and these limits become a safety net you rarely touch.