Definition
Daily drawdown (daily loss limit)
The maximum you may lose in one trading day, commonly 4–5%, resetting at a fixed server time.
The daily limit is usually computed from the day's starting balance or equity at reset time (often 5pm ET / server midnight). Floating losses typically count — a deep red open position can breach you before it recovers.
Knowing the reset time and whether the base is balance or equity is the difference between a controlled red day and a terminated account.
Related terms
General industry definitions — individual firms define terms differently in their own ToS; the decoded rulebook for each firm is the source of truth. Educational, not financial advice.