---
title: "What is Daily Drawdown?"
description: "Explains daily loss rule."
url: https://help.finotivefunding.com/en/articles/918-what-is-daily-drawdown
collection: "Core Risk Rules & Exposure Controls"
updated: 2026-11-08
language: en
---

# What is Daily Drawdown?

Explains daily loss rule.

Daily Drawdown is the maximum permitted loss within a Trading Day. A Trading Day runs from 17:00:00 New York Time to 16:59:59 New York Time the following day.

Open equity and floating losses are included. A Daily Drawdown breach is a Hard Breach and results in immediate account closure. There is no warning and no Strike.

**Related Terms:** Sections 2 and 7.4