A daily loss limit is the most an account may lose in one session. It is measured on open equity from the balance at the start of the day, so an open losing position counts in full. At StarTrading it is soft: reaching it closes your positions and blocks new orders until the next session opens at 6:00 pm ET, and it never fails the account. Its job is to make sure that one bad day cannot spend the Max Loss Limit, the trailing drawdown that does fail an account.
What is the difference between a soft and a hard limit?
| Soft limit | Hard limit | |
|---|---|---|
| What happens when it is reached | positions closed, orders blocked until the next session | account failed |
| Does the account survive? | yes | no |
| At StarTrading | the Daily Loss Limit | the Max Loss Limit, the funded Stream news window |
Soft is not the same as harmless. The loss that triggers the block is real for the account: it lowers the closed balance, and the closed balance is what the Max Loss Limit reads at the end of the day. A soft limit protects you from yourself for the rest of the session; it does not undo the damage already done.
How much is it on each account?
The amount depends on the account type and the size. The Daily Loss Limit rule page is the reference; here are the sixteen products in one table:
| Size | Cycle | Clear | Stream (if kept on) | Direct |
|---|---|---|---|---|
| 25K | none | $600 | $600 | none |
| 50K | $1,200 | $1,200 | $1,200 | $1,200 |
| 100K | $1,800 | $1,800 | $1,800 | $2,100 |
| 150K | $2,700 | $2,700 | $2,700 | $3,000 |
Two things to notice. The 25K Cycle and 25K Direct have no daily limit at all: the Max Loss Limit of $1,000 is the only floor, and one session can reach it. Stream accounts let you switch the limit off at checkout for a higher price; the choice carries over to the funded account, and with the limit off the intraday Max Loss Limit is the only protection.
Why does the daily limit protect the Max Loss Limit?
Compare the two amounts on a fresh account. A Clear 100K has a $1,800 daily limit and a $3,000 Max Loss Limit. One full daily loss leaves $1,200 of room. A second full daily loss does not happen: the Max Loss Limit is hit at −$1,200 the next day, before the daily limit at −$1,800. This is true on every size: two full daily losses from a fresh account exceed the Max Loss Limit.
So the daily limit is not a budget you can spend day after day. It is a ceiling on the damage of a single session, sized so that one bad day is survivable and two are not. A trader who reads it as “I am allowed to lose $1,800 today” has misread it; the amount they are allowed to lose is whatever keeps the Max Loss Limit out of reach tomorrow.
How do you set a personal daily stop under it?
A personal daily stop is the loss at which you stop trading by choice, before the platform stops you. Set it below the daily limit and, more importantly, from the room to the Max Loss Limit:
| Account | Daily limit | Room on day one | Personal stop at half the limit | Days it can absorb |
|---|---|---|---|---|
| Clear 50K | $1,200 | $2,000 | $600 | 3 |
| Clear 100K | $1,800 | $3,000 | $900 | 3 |
| Clear 150K | $2,700 | $4,500 | $1,350 | 3 |
Half the daily limit is a common choice because it turns one catastrophic day into three survivable ones and still leaves room after the third. As the room shrinks, the stop should shrink with it: a Clear 100K that has lost $1,500 over the week has $1,500 of room, and a $900 stop would put the account one bad morning from failure. Size each trade from the stop, not the other way round; the position sizing article shows how many micros or minis a given stop allows.
What happens after a breach on each account type?
The immediate effect is the same everywhere: positions are closed at market, orders are rejected until 6:00 pm ET. What differs is what the limit looks like the next day:
- Cycle and Direct. The fixed amount applies during the evaluation and once funded. Once a funded account is above its initial trail balance, the fixed limit is replaced by 60% of the highest end-of-day profit, and that scaled limit only ever rises. The scaling rule has the arithmetic.
- Clear. The fixed amount applies at every stage, evaluation and funded, and never scales.
- Stream. If kept on, the fixed amount applies at every stage. If switched off at checkout, there is no daily block; the intraday Max Loss Limit is the only floor, and an open loser counts against it in real time.
None of these breaches fail the account by themselves. What fails an account is the Max Loss Limit, reached at the close on Cycle, Clear and Direct, or at any moment on funded Stream. A daily breach is a warning that the next one may be the last.
Three mistakes the limit is designed to catch
- Adding to a losing position near the limit. The block closes everything at market, including the part you just added.
- Trading full size through a scheduled release. The limit is measured on open equity; one adverse candle on six minis can trigger it before you can react. The news trading rule has the times.
- Expecting the block to lift at midnight. The next session starts at 6:00 pm ET.
Evaluation and funded accounts are simulated until the Live stage, and futures trading carries a substantial risk of loss. The daily limits and drawdowns of every product are on the 100K account page and the pricing page.
Sources
- CME Group, E-mini S&P 500 contract specifications and Micro E-mini S&P 500 contract specifications: tick values behind the sizing notes.
- CME Group, Globex trading hours: the 6:00 pm ET session open at which a daily block lifts.
Simulated accounts until Live. Futures trading involves substantial risk of loss.