This rule limits how much you can lose in a single trading day. Understanding how it’s calculated—and what happens if it’s breached—is essential for staying eligible in both the challenge phase and the funded stage.
Daily Loss Limit – How It Works
The Daily Loss Limit is calculated using the highest of your account’s balance or equity (whichever is higher). If your balance or equity drops below the daily limit at any point, the account is breached.
The daily limit applies to both realized and unrealized (floating) losses
The daily limit is based on balance and equity (whichever is higher)
The daily limit is evaluated on both challenge and funded stages, depending on the model
The daily reset time and calculation method may vary by account type, but the principle remains the same: do not allow balance or equity to fall below the daily threshold.
Daily Loss Limits by Model
Based on NSF’s official rules:
NextStage Pro
1-Step Challenge: 4% daily drawdown
2-Step Challenge: 5% daily drawdown
Instant Funding
Instant Funding: 3% trailing daily drawdown
Pay After Pass
Pay After Pass (1-Step): 8% daily drawdown
Pay After Pass (2-Step): 8% daily drawdown
What Happens if You Breach the Daily Loss Limit?
Breaching the Daily Loss Limit results in an account breach.
If you breach during a challenge, you may be able to start again by purchasing a new challenge (and if your model supports it, following the applicable retry process). If you breach on a funded account, the account is closed.
Summary
The Daily Loss Limit is based on the higher of balance or equity
It includes both floating and closed losses
Dropping below the daily threshold triggers an account breach
Daily limits vary by model (1-Step, 2-Step, Instant, Pay After Pass)
If you’re unsure about your current drawdown levels, check your dashboard for real-time monitoring or contact NSF support via nextstagefunded.com.