How is the overall loss limit calculated?

The Maximum Overall Loss limit is the amount your account’s equity or balance can’t go below. 

The overall loss limit for traders in the 1 Step Pro and Prime challenge is 6%, while for the 2 Step Pro and Prime (both phase 1 and 2) challenge, it is set at 8% of the initial account balance. These limits are applicable to both challenge and Hola Prime accounts.

The rule states that the sum of the currently floating PnL (Profit and Loss) and the realized PnL (Profit and Loss) on all closed positions must not hit the Maximum overall Loss Limit.

For instance, On our 1 Step Pro account, the overall loss limit is 6% of the initial balance.

So, considering $10,000 as the initial balance, the Maximum Loss limit means the equity or balance cannot drop below $9,400 ($10,000 – $10,000*6%) at any time.

Another example is on our 2 Step Prime account, the overall loss limit is 8% of the initial balance.

So, considering $100,000 as the initial balance, the Maximum Loss limit means the equity or balance cannot drop below $92,000 ($100,000 – $100,000*8%) at any time.