Where the line sits

At 00:00 UTC the day’s reference is set to your balance at that moment. The line is 4% below that reference, and your equity — open positions included, valued at the price you could close them at — must stay above it until the next reset.

On a fresh $10,000 Large account the reference is $10,000, so the day’s line is $9,600: you can be down $400 on the day and still be trading.

How it resets

• After a winning day it loosens. Realised profit raises tomorrow’s reference, so the line moves up with it.
• After a losing day it tightens. The reference is lower, and so is the allowance.
• Floating profit doesn’t count. An open winner held past midnight does not raise the reference — the next day is not made tighter by profit you haven’t taken.
• Floating loss doesn’t carry over. If you hold a losing position past midnight, the reference is set no higher than what the account is actually worth, so the new day starts with its full allowance and yesterday’s loss is not charged to today.
• Withdrawals and scale-ups are not losses. Both move the reference by the same amount they move your balance.

Why it’s 4% and not less

The underlying is crypto, not forex. A move that is a bad day for a currency pair is an ordinary morning for bitcoin, and a daily line set at forex proportions would end accounts on noise rather than on decisions.

The daily limit sits above the overall floor of −5%, which never resets. Both apply at once; whichever you reach first ends the account.