What is Daily-Loss Cap?
Quick answer
A daily-loss cap is a limit on how much you can lose in a single day before trading is paused. It bounds bad days, so one rough session cannot cascade into a much larger loss. In copy trading it applies at the account level, on top of per-trade controls, and works alongside sizing and exposure limits.
A daily-loss cap is a simple but powerful guardrail: it puts a floor under how bad a single day can get. Rather than relying on any one trade going right, it limits the damage across a whole session.
How a daily-loss cap works
You set a maximum amount you are willing to lose in a day. As losses accumulate, once they reach that cap, trading is paused for the rest of the day, and it typically resets the next session. The point is to stop a bad day from snowballing: instead of continuing to trade through a rough patch and digging a deeper hole, the cap steps in and calls it.
Why it matters in copy trading
When you follow active leaders, several losing trades can land in a single day, and without a limit the total could grow beyond what you intended. A daily-loss cap enforces a stopping point at the account level, working alongside a sizing multiplier (how big each trade is), an exposure limit (how much is committed at once), and the kill switch (an instant manual stop). Together they keep the risk of copying inside bounds you set.
Frequently asked questions
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