In short. The daily loss limit is the most an account may lose in one trading day, closed and open positions included, before the firm closes the positions or the account. Firms set it as a fixed amount or a percentage, often between 1 and 2.5 % of the account size; some evaluations have none and rely on the maximum drawdown alone.
A $1,000 daily limit on a 50K account with a $2,500 drawdown means two bad days can end the account even without a single oversized trade. Treat your own daily stop as 50 to 60 % of the firm's limit, because the limit counts the worst open point of the day, including slippage.
Some firms turn the daily loss into a soft rule (positions flattened, account kept), others into a breach. The firm page states which, from the database, and 'not stated' when the firm does not publish it.
Questions traders ask
What is Daily loss limit?
The daily loss limit is the most an account may lose in one trading day, closed and open positions included, before the firm closes the positions or the account. Firms set it as a fixed amount or a percentage, often between 1 and 2.5 % of the account size; some evaluations have none and rely on the maximum drawdown alone.