Max Loss

The maximum percentage loss allowed in a single trading day. Calculated from the balance (or equity) at the start of the day. Breaching this limit at any point during the session fails the account immediately.

Violating a prop firm rule — typically hitting the daily drawdown or maximum loss limit. A breach fails the challenge or funded account immediately and cannot be reversed.

A drawdown calculation method where the maximum loss limit trails the highest equity point reached. Used by Apex — locks in profits but creates an invisible rising floor.