Why There is a Daily Loss Limit?

At FCT, we try to create an environment to encourage traders to develop their skills in professional trading within the financial market, leading them towards success.

The implementation of the Daily Loss Limit rule in simulated trading allows us to objectively assess traders' skills, especially in the area of risk management. By following this rule, you will learn why it’s so important to monitor the open losses in order to have a proper control of your account Equity and risks taken in each open position.  A lack of discipline in following this rule may indicate a lack of commitment to consider trading as a serious business, which could impact your ability to become a successful trader.

We understand that market conditions might vary and that’s why we offer our traders a generous 10% drawdown buffer and 5% maximum daily loss. These conditions are in a ratio of 1 : 1 (loss to profit) in the 2-Step Evaluation Course and even lower ratio of 1 : 0.8 (loss to profit) in the 3-Step Evaluation Course. This is probably the best prop trading environment out there. Our major aim is that our traders are experienced and that’s also why we introduced the above risk parameters that should keep traders in the game.

 

 

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