FTMO rules, explained

A static 10% maximum loss from the starting balance plus a 5% daily loss limit measured from each day's starting equity. Targets are percentage-based.

FTMO Challenge 100K$100,000
Account size
$100,000 (example)
Maximum loss
$10,000 on a 100K — measured from the initial balance (static).
10%
Daily loss limit
$5,000 on a 100K — from the day's starting balance, includes open P&L.
5%
Profit target
$10,000 Challenge / 5% Verification.
10%
Minimum trading days
4 days

Figures reflect a common FTMO account at the time of writing — firms revise rules often, so verify against the FTMO site before relying on them.

How to pass without breaching

  • The 5% daily loss includes floating P&L — your open drawdown counts, not just closed losses.
  • Risk a small fixed percentage per trade (e.g. 0.5–1%) so a losing streak never approaches the 5% day or 10% total.
  • Hit the 4-day minimum; a single big day cannot pass the Challenge on its own.

Check your exact distance to breach

Drop your balance, peak and limit into the free calculator — the FTMO preset is one click.

Open the drawdown calculator →

FTMO FAQ

What is the FTMO maximum loss rule?+

On a 100K Challenge the maximum loss is 10% ($10,000) from your initial balance — a static line that does not trail your profit.

Does the FTMO daily loss include open trades?+

Yes. The 5% daily loss limit is measured on your balance plus floating (open) P&L from the day's starting equity, so unrealised drawdown counts.

Track your FTMO rules live.

Import your trades and Merlin computes your real-time distance to every limit above — and the Pre-Trade Check stops the trade that would breach you before you take it.

No email. No card. 7-day free trial on Pro & Premium when you're ready.