The Daily Drawdown rule is the maximum amount you can lose throughout a single day. Your demo account will be closed automatically and permanently once you reach the Daily Drawdown limit. We calculate your Daily Drawdown Limit for you on your Dashboard, and we update your new Daily Drawdown limit every day at 16:00CT when the markets close.
*Please note that commissions for executing trades will be included in your daily P&L.
For example:
If you have a $100,000 demo account and your Daily Drawdown is $1,000, you will see on your Dashboard that your Daily Drawdown limit is set to $99,000, meaning if your current equity (unrealized balance) drops below $99,000 your demo account will be breached.
If you stop your day at $99,100, then at 16:00CT when we calculate your new Daily Drawdown limit for the new day, we will subtract the $1,000 Daily Drawdown you are allowed and you will see the new Daily Drawdown limit on your Dashboard set at $98,100 (Previous day's closing Balance - Daily Drawdown).