Does SFX Funded's Maximum Daily Loss include unrealized losses?

Yes, SFX Funded includes both realized and unrealized (floating) losses when calculating your daily loss. If your open positions show a combined loss of 3% or more, you'll breach the rule even if you haven't closed any trades. The rule applies to your total equity, not just closed position P&L.

What happens if I breach the Maximum Daily Loss?

Breaching the 3% Maximum Daily Loss results in immediate account closure and disqualification from the SFX Funded program. You cannot continue trading on that account, and you'll need to purchase a new challenge to start over. There are no warnings or second chances once this rule is violated.

When does SFX Funded's daily loss limit reset each day?

The daily loss limit resets at 5 PM EST (server time) each trading day. Your daily loss calculation starts fresh from your account balance at this reset time. Positions held overnight carry their unrealized P&L into the new trading day's calculation.

Is the 3% daily loss calculated from balance or equity?

SFX Funded calculates the 3% Maximum Daily Loss from your account balance at the start of each trading day. However, the actual loss measurement includes unrealized P&L from open positions, effectively making it an equity-based enforcement. Your floating losses count toward the limit even if positions remain open.

Updated 2026-03-08

SFX Funded Maximum Daily Loss Rule Explained

SFX Funded

Quick Answer

SFX Funded's Maximum Daily Loss rule limits traders to losing 3% of their account balance in a single trading day.

The 3% daily loss is calculated from your account's starting balance each day and includes both realized and unrealized losses. Once you hit this threshold, your trading account will be closed and you'll be disqualified from the challenge or funded program.

Key Rule Details

Limit

Dollar Value ($80,000)

$2,400

Includes

Open + Closed P&L

Resets

Daily

Breach

Account terminated

Calculation Example

Account Size: $80,000 — Maximum Daily Loss: $2,400

Account Size	$80,000
Maximum Daily Loss Limit	$2,400
Scenario: Closed P&L	$-672
Scenario: Floating P&L	$-1,248
Total Exposure	$-1,920
Remaining Buffer	$480

Limit used:80%

Common Mistakes

Ignoring Unrealized Losses

Many traders think only closed positions count toward the daily loss limit. However, SFX Funded includes floating losses in their calculation. If you're holding positions with $1,500 in unrealized losses on a $50,000 account, you're already at your 3% daily limit even without closing any trades.

Weekend Gap Violations

Traders often forget that positions held over weekends can gap beyond the daily loss limit when markets open Monday. A trader holding risky positions over the weekend on a $100,000 account could wake up to a $4,000 gap down, instantly breaching the $3,000 daily loss limit and losing their account.

Martingale After Losses

Some traders double down after initial losses, thinking they can recover within the same day. On a $20,000 account with already $400 in losses, risking another $600 to 'break even' puts you dangerously close to the $600 daily loss limit, often resulting in immediate disqualification.

Timezone Confusion Reset

Traders sometimes miscalculate when their daily loss resets, continuing to trade thinking they have a fresh 3% allowance. The daily reset follows specific server time, and trading during overlap periods can lead to unexpected violations when yesterday's losses still count toward today's limit.

Protection Strategies

Set Personal 2% Daily Buffer

Always stop trading when you reach 2% daily loss instead of the full 3% allowed by SFX Funded. This gives you a 1% cushion for market volatility and slippage. On a $100,000 account, stop at $2,000 loss rather than risking the full $3,000 limit.

Calculate Maximum Position Size Daily

Never risk more than 1% per trade to stay well within the 3% daily limit across multiple positions. On a $50,000 account, limit individual trade risk to $500 maximum. This allows for 2-3 losing trades before approaching the $1,500 daily threshold.

Install Real-Time Loss Alerts

Set up platform alerts at 2% and 2.5% daily loss levels to get immediate notifications before reaching SFX Funded's 3% limit. Configure these alerts to include unrealized P&L since floating losses count toward the daily maximum.

Avoid Trading Before Major News

Skip trading 30 minutes before and after high-impact economic releases to prevent sudden volatility spikes that could breach your daily limit instantly. Major news events can cause price movements exceeding 3% within seconds, making risk management impossible during these periods.

Related Rules

Maximum Total Loss

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Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on SFX Funded's official website before purchasing a challenge. Updated 2026-03-08.