{"id":1671,"date":"2026-01-30T12:58:38","date_gmt":"2026-01-30T12:58:38","guid":{"rendered":"https:\/\/ftmo.com\/au\/?post_type=faq&#038;p=1671"},"modified":"2026-02-02T08:56:21","modified_gmt":"2026-02-02T08:56:21","slug":"what-is-the-max-loss-ml-rule-in-ftmo-challenge-1-step","status":"publish","type":"faq","link":"https:\/\/ftmo.com\/au\/faq\/what-is-the-max-loss-ml-rule-in-ftmo-challenge-1-step\/","title":{"rendered":"What is the Max Loss (ML) rule in FTMO Challenge: 1-Step?"},"content":{"rendered":"<p><strong>The Maximum Loss Limit<\/strong> is a limit below which equity cannot drop at any time.<\/p>\n<p>If the equity drops below the limit, the rule is considered violated.<\/p>\n<h2>How is the Maximum Loss Limit calculated?<\/h2>\n<p>The <strong>Maximum Loss Limit<\/strong> is recalculated every midnight <strong>CE(S)T<\/strong> as the difference between:<\/p>\n<ul>\n<li>the highest account balance achieved at the end of any preceding trading day or, if higher, the <strong>Initial Simulated Capital<\/strong>, and<\/li>\n<li>the <strong>Maximum Loss Amount<\/strong>.<\/li>\n<\/ul>\n<p>The <strong>Maximum Loss Amount<\/strong> is <strong>10%<\/strong> of the Initial Simulated Capital.<\/p>\n<p>The limit can only increase, but never decrease. Intraday changes resulting from open positions do not affect the Maximum Loss Limit.<\/p>\n<h2>Where does this rule apply?<\/h2>\n<p>This rule applies to the <strong>FTMO Challenge: 1-Step<\/strong> as well as the <strong>FTMO Account: 1-Step<\/strong>.<\/p>\n<h2>Example (Initial Simulated Capital: $100,000)<\/h2>\n<h3>Limit for Day 1<\/h3>\n<ul>\n<li><strong>Initial Simulated Capital<\/strong> = $100,000<\/li>\n<li><strong>Calculation<\/strong> = $100,000 \u2212 $10,000 = $90,000<\/li>\n<li><strong>Limit for Day 1<\/strong> = $90,000<\/li>\n<\/ul>\n<h3>Limit for Day 2<\/h3>\n<ul>\n<li><strong>Balance at midnight CE(S)T between Day 1 and Day 2<\/strong> = $104,000<\/li>\n<li><strong>Calculation<\/strong> = $104,000 \u2212 $10,000 = $94,000<\/li>\n<li><strong>Limit for Day 2<\/strong> = $94,000<\/li>\n<\/ul>\n<h3>Limit for Day 3<\/h3>\n<ul>\n<li><strong>Balance at midnight CE(S)T between Day 2 and Day 3<\/strong> = $103,000<\/li>\n<li><strong>Calculation<\/strong> = $104,000 \u2212 $10,000 = $94,000\n<p><em>(Because the closing balance between Day 1 and Day 2 is higher than between Day 2 and Day 3, that higher balance is used for the limit calculation.)<\/em><\/li>\n<li><strong>Limit for Day 3<\/strong> = $94,000<\/li>\n<\/ul>\n","protected":false},"featured_media":0,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"faq-category":[9],"class_list":["post-1671","faq","type-faq","status-publish","format-standard","hentry","faq-category-rules"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.3 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the Max Loss (ML) rule in FTMO Challenge: 1-Step? | FTMO Australia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ftmo.com\/au\/faq\/what-is-the-max-loss-ml-rule-in-ftmo-challenge-1-step\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is the Max Loss (ML) rule in FTMO Challenge: 1-Step?\" \/>\n<meta property=\"og:description\" content=\"The Maximum Loss Limit is a limit below which equity cannot drop at any time. 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