How FTMO Calculates the Daily Loss and Max Loss Limits: A Worked Example
How FTMO measures daily and max loss on the 1-Step and 2-Step Challenge: reset time, static vs trailing floors, equity and a worked example.
By Volodymyr Kravchenko Published Updated Data as of
Short answer
FTMO tests both loss limits against equity: balance plus open profit or loss, adjusted for swaps and commissions. The daily limit is recalculated at 00:00 CE(S)T as the balance then minus 3% (1-Step) or 5% (2-Step) of the initial capital. The maximum loss is 10% of the initial capital: trailing at the end of each day on the 1-Step, static on the 2-Step.
Key takeaways
- Two floors apply at once, a daily one that resets at 00:00 CE(S)T and an overall one. The nearer floor is the one that matters.
- 1-Step: the overall floor trails, so it can rise after good days but never falls. 2-Step: the overall floor is fixed at the initial capital minus 10%.
- Open positions count: equity, not balance, is tested. A floating loss can breach a limit before you close anything.
- Figures are from FTMO's own page, read on 30 October 2026. Rules change: check FTMO's page and dashboard before you trade.
The two floors in one view
| 1-Step Challenge | 2-Step Challenge | |
|---|---|---|
| Daily loss | Balance at 00:00 CE(S)T minus 3% of initial capital | Balance at 00:00 CE(S)T minus 5% of initial capital |
| Maximum loss | 10%, trailing at end of day | 10%, static |
| What is tested | Equity (balance + open P/L, adjusted for swaps and commissions) | Equity |
Worked example (made-up numbers, 100,000 account)
2-Step. Initial capital 100,000. At 00:00 CE(S)T the balance is 101,500.
- Daily floor = 101,500 − 5,000 = 96,500
- Overall floor (static) = 100,000 − 10,000 = 90,000
- The nearer floor today is 96,500. Equity at or below it breaches the daily limit.
1-Step. Initial capital 100,000. The highest end-of-day balance so far is 104,000. The balance at 00:00 CE(S)T is 104,000.
- Daily floor = 104,000 − 3,000 = 101,000
- Overall floor (trailing) = 104,000 − 10,000 = 94,000; it can rise on later days but never falls
- The nearer floor today is 101,000.
These numbers only show the arithmetic. Your own account, the day you start and any rule update change the result: check FTMO’s dashboard.
Three mistakes that breach a limit
- Watching balance, not equity. An open trade’s floating loss counts.
- Forgetting the reset clock. The day changes at 00:00 CE(S)T, not at your midnight.
- Treating a trailing floor as fixed. On the 1-Step it moves up after good days, so the room to lose shrinks from the top.
Use it before you trade
Put your numbers into the FTMO drawdown and prop firm loss limit calculator to see how much room is left today and overall. For how the firms compare, see the prop firm rules comparison, and check the news windows before a release. Read our FTMO overview for the full structure and risks.
How this was prepared
Checked 30 Oct 2026
All rules come from FTMO's Trading objectives page, read on 30 October 2026. The example uses made-up round numbers to show the arithmetic: it is not a result, a forecast or a recommendation. Marlin does not run FTMO's platform; its own dashboard is the authority. VERIFY CURRENT DATA before trading. Facts are separated from analysis and opinion; anything that could not be verified against a current source is marked VERIFY CURRENT DATA. Read the full methodology and editorial policy.
Sources (1)
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Official or primary sources used for the facts above. Figures and terms change, so check the source before acting on them.
- FTMO — Trading objectivesMaximum Daily Loss and Maximum Loss for the 1-Step and 2-Step Challenge: percentages, reset time CE(S)T, static vs end-of-day trailing, equity.Accessed
Frequently asked questions
When does FTMO's daily loss limit reset?
At 00:00 CE(S)T (Central European time, with summer time). FTMO recalculates the limit then as the balance at that moment minus 3% (1-Step) or 5% (2-Step) of the initial capital. Check your own time zone against that clock.
Is FTMO's maximum loss static or trailing?
It depends on the programme. On FTMO's 1-Step Challenge it is an end-of-day trailing limit: 10% of the initial capital, recalculated at 00:00 CE(S)T from the highest earlier end-of-day balance; it can rise but never fall. On the 2-Step Challenge it is static: the initial capital minus 10%.
Do open trades count toward the limits?
Yes. FTMO tests the limits against equity, which is balance plus open position profit or loss, adjusted for swaps and commissions. A floating loss can breach a limit before you close the trade.
Which limit should I watch first?
The nearer floor. Right after the daily reset the daily floor is often the closer one; after a long losing run the overall floor can be. Calculate both before every trade.
Is there a calculator for this?
Yes: the FTMO drawdown and prop firm loss limit calculator on Marlin applies these formulas to your numbers. It is not official, so confirm the result in FTMO's own dashboard.
AdRead FTMO's rules for your programme
Targets, loss limits and news rules differ by programme. Check FTMO's own pages for your account type before you pay for a Challenge.
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Written by
Volodymyr KravchenkoIndependent market researcher focused on Forex, Gold, commodities, macroeconomic data and AI-powered financial intelligence.
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This content is provided for educational purposes only and is not investment advice. Trading involves risk, and past performance does not guarantee future results. Affiliate relationships may exist. Always conduct your own independent research before making financial decisions.