FTMO daily loss rule explained

Last checked 2026-10-04 against FTMO's Trading Objectives page and FTMO Academy.

The rule in one sentence

Each day at 00:00 CE(S)T FTMO takes your account balance and subtracts a fixed amount: 5% of your initial capital on the 2-Step Challenge, or 3% on the 1-Step Challenge. Your equity must not drop below that number at any moment until the next midnight reset.¹

Three details that catch people out

The amount is fixed, the starting point moves. The loss amount is a percentage of initial capital, so on a $100,000 2-Step account it is always $5,000. What changes is the balance it is subtracted from. Close a day at $102,000 and tomorrow's limit is $97,000; close at $101,000 and it is $96,000.¹
It is measured on equity, not closed trades. Equity is balance plus open-position P/L, minus commissions and plus/minus swaps. A floating loss counts even if you never close the trade.^1,2
Overnight positions get re-based at midnight. The new limit is set from the midnight balance, so a position that was carrying a large floating loss before midnight can be over the new day's limit straight after the reset. FTMO Academy calls this out specifically.²

Worked example: $100,000 FTMO Challenge 2-Step

Day	Balance at 00:00 CE(S)T	Daily loss amount	Equity must stay above
1	$100,000 (initial capital)	$5,000	$95,000
2	$102,000	$5,000	$97,000
3	$101,000	$5,000	$96,000

These figures are FTMO's own example.¹ On the 1-Step Challenge the same account would use $3,000 instead of $5,000 (limits of $97,000, $99,000 and $98,000).¹

How it interacts with FTMO's Maximum Loss

2-Step: Maximum Loss is static. Equity must stay above 90% of initial capital ($90,000 on a $100k account) for the whole account.^1,3
1-Step: Maximum Loss is an end-of-day trailing limit: the highest midnight balance (or initial capital, if higher) minus 10% of initial capital. It can only go up.¹ See trailing vs static drawdown.

Practical takeaways

Work out today's floor right after midnight CE(S)T, in your own time zone. FTMO's client area has a time-zone converter.²
Size each trade so that its stop-out keeps you above the floor with a buffer for slippage, commissions and swaps.
Be careful about holding large floating losses through midnight.

Check your FTMO numbers in the free calculator

Sources

FTMO, "Trading Objectives" (1-Step and 2-Step tabs): ftmo.com/en/trading-objectives/
FTMO Academy, "Maximum Daily Loss": academy.ftmo.com/lesson/maximum-daily-loss/
FTMO Academy, "Maximum Loss": academy.ftmo.com/lesson/maximum-loss/