The daily loss limit is determined by calculating 5% of the equity at the close of the previous day. It is shown as a %, so that the monetary amount adjusts automatically as your account rises and falls. For example, let’s assume that the equity on your account was $200,000 at the close of the previous day. 5% of $200,000 is $10,000, so your account would hit the loss limit if your equity fell to $190,000 during the current day. This calculation ensures that you can manage your risk effectively when you trade. Please note, all traders using FFC accounts must comply with the daily loss limits and maximum trailing drawdowns that were applicable at the time of purchase. Rules cannot be changed retrospectively.