Guide
Daily loss limit vs max loss limit: which one ends your prop firm account
In short: A daily loss limit caps how much you can lose in one trading day. Hit it and your day is over, but the account usually survives: at Topstep, Top One Futures and Blue Guardian you are flattened and back the next session. Full answer ↓
At a glance
What it caps
If you hit it (Topstep)
Combine needs a Reset; funded account is closed
Topstep 50K: max loss with the optional daily limit
$2,000
Does hitting a daily loss limit fail the account?
No
Topstep, Top One Futures, Blue Guardian: paused until the next session
Full daily-limit days that use up a Topstep 50K
2
from the start, $1,000 + $1,000 = $2,000 (our math)
Green blocks = $500 of max loss each coral = daily limit
All figures from Blue Guardian, Top One Futures and Topstep official pages, checked 2026-10-17. Sources and full rules below.
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Read the details
The short answer
The daily loss limit ends your day. The max loss limit ends your account. Know both numbers before your first trade.
Key facts:
- Topstep 50K: daily limit $1,000 (optional), Maximum Loss Limit $2,000.
- Daily limit hit: flattened, back at 6 PM ET, still eligible for funding.
- Max loss hit: the Trading Combine needs a Reset; the Express Funded Account is closed.
- Top One Futures and Blue Guardian also pause you for the day instead of failing you.
Watch out:
- 2 full daily-limit days in a row use up the whole $2,000 on a Topstep 50K (our math).
- Open losses count in real time, so a gap can take you past the limit.
- A daily limit set at Topstep checkout is fixed; you can't change it later.
Full summary
A daily loss limit caps how much you can lose in one trading day. Hit it and your day is over, but the account usually survives: at Topstep, Top One Futures and Blue Guardian you are flattened and back the next session. A max loss limit caps your total loss. Hit it and the account fails. On a Topstep 50K the optional daily limit is $1,000 and the Maximum Loss Limit is $2,000.
Plain-language terms
Topstep 50K: daily loss limit vs Maximum Loss Limit
| Rule | Daily loss limit | Max loss limit | Tag |
|---|---|---|---|
| Size ⓘ | $1,000 | $2,000 | Differs |
| ⓘ 50K account. | |||
| Caps | One day's loss | Your total loss | Differs |
| Required | Optional, added at checkout | Always on | Differs |
| If you hit it | Flattened, back at 6 PM ET | Account fails | Differs |
| ⓘ Combine: Reset; XFA: closed. | |||
| Rule violation | No | Yes | Differs |
| Starts fresh | Every session | Never; trails up, never down | Differs |
| Can you change it | No, if set at checkout | No | SAME |
Two limits, two jobs
Most futures prop firms give you two loss limits. The daily loss limit caps one bad day and starts fresh every session. The max loss limit (Topstep calls it the Maximum Loss Limit, others call it max drawdown) caps your total loss and is the line that ends the account. On a Topstep 50K: optional daily limit $1,000, Maximum Loss Limit $2,000.
What this means for you: The daily limit stops a bad day; the max loss limit ends the account.
Daily loss limit: your day ends, your account doesn't
At Topstep the Daily Loss Limit is optional in the Trading Combine and the Express Funded Account: $1,000 on 50K, $2,000 on 100K and $3,000 on 150K if you add it at checkout. When your net P&L for the trading day (6 PM ET to 4:10 PM ET) hits it, open positions are flattened, pending orders are canceled and you can trade again at 6 PM ET. Topstep says it is not a rule violation and the account stays eligible for funding. A checkout limit is fixed; you can't change it later.
What this means for you: Hit Topstep's daily limit and you are flat until 6 PM ET, still eligible for funding.
Max loss limit: hit it once and the account fails
Topstep's Maximum Loss Limit is $2,000 on 50K, $3,000 on 100K and $4,500 on 150K. It is checked in real time, open trades included, and it trails your end-of-day balance up but never down; in the Trading Combine it locks once it reaches your starting balance. Hit it in the Trading Combine and the account can't be funded until you Reset. Hit it in the Express Funded Account and the account is permanently closed. Topstep makes no exceptions.
What this means for you: Hit the Maximum Loss Limit and the Combine needs a Reset; the funded account is closed.
Top One Futures: daily limit from yesterday's close
Top One Futures has a daily loss limit on both evaluation and funded accounts: $1,000 on 50K. It is measured from the previous trading day's closing balance, and floating losses and commissions count. Its own example: a 25K account with a $500 limit that closed yesterday at $26,000 breaches at $26,000 - $500 = $25,500. On the evaluation a breach pauses the account until the next trading day; on a funded account it is a soft breach, as long as the max trailing drawdown was not hit.
What this means for you: Top One measures the daily limit from yesterday's close and pauses you until the next day.
Blue Guardian: soft breach, back the next day
Blue Guardian Futures Standard accounts have a daily loss limit of 2% of the starting balance, $1,000 on 50K (the 25K has none). If balance or equity falls below it, all open trades are closed and the account is disabled for the day. It is a soft breach, not a hard breach: the account is reinstated the next trading day. The $2,000 end-of-day trailing max drawdown on 50K is the limit that ends the account.
What this means for you: Blue Guardian's daily limit is a soft breach: closed for the day, back the next.
How to use both
Treat the daily limit as your stop for the day and the max loss as the money you can never get back. On a Topstep 50K with the $1,000 daily limit, 2 full daily-limit days in a row from the start add up to the whole $2,000 Maximum Loss Limit (our math). Set your own daily stop below the firm's: Top One Futures says its limit is a risk rule, not a stop loss, and slippage or gaps can fill it at a different price.
What this means for you: Stop yourself before the firm's daily limit does; 2 bad days can use up a Topstep 50K.
FAQ
What is the difference between a daily loss limit and a max loss limit?
The daily loss limit caps one day's loss and resets every session. The max loss limit caps your total loss and fails the account when you hit it. On a Topstep 50K they are $1,000 (optional) and $2,000.
Does hitting the daily loss limit fail my account?
Usually no. Topstep calls it a forced break, not a rule violation: positions are flattened and you trade again at 6 PM ET. Top One Futures pauses the evaluation until the next trading day, and Blue Guardian calls it a soft breach and reinstates the account the next trading day.
What happens if I hit Topstep's Maximum Loss Limit?
In the Trading Combine the account is liquidated for the day and can't be funded until you Reset. In the Express Funded Account it is permanently closed (Back2Funded may be available). Topstep makes no exceptions.
Not financial advice. Educational content only. Trading futures, options and crypto involves substantial risk of loss. Full disclaimer.