1-Step Challenge:
The total permissible loss on your account is capped at 6%.
For instance, if you are trading with an initial account balance of $100,000:
- The maximum allowable total loss is calculated as 6% of your initial balance, equating to $6,000.
- Therefore, including any unrealized or floating positions, your account equity must not fall below $94,000.
2-Step Challenge:
The total permissible loss on your account is capped at 10%.
For instance, if you are trading with an initial account balance of $100,000:
- The maximum allowable total loss is calculated as 10% of your initial balance, equating to $10,000.
- Therefore, including any unrealized or floating positions, your account equity must not fall below $90,000.