Drawdown and loss limits · Rookie
Maximum loss limit
Also searched as: MLL, maximum drawdown rule, total loss limit
What does Maximum loss limit mean?
A maximum loss limit is the account threshold a trader must not breach. It may be fixed or trailing, and may be monitored using equity even when calculated from balance.
Example
A hypothetical account fails if its monitored value reaches a $47,000 floor.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Determine whether touching the limit breaches it, which costs count, and when the threshold changes.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.