Daily loss vs maximum loss
Two plans can display the same percentage and still behave differently.
Start with the calculation
Find out whether the rule uses balance, equity, a fixed starting value or a moving high-water mark. Check the reset time and whether open trades, commissions and swaps count.
An illustrative example
Suppose a fictional account starts with $10,000 and has a static 10% overall loss allowance. Its reference floor would be $9,000. A trailing rule can move that floor upward after gains. The same ‘10%’ label therefore does not describe the same experience.
A practical question to ask
Instead of guessing the technical term, ask: ‘If I make a profit today, does tomorrow’s loss limit move?’ Then compare the answer with the official calculation for your plan.