Both the overall loss limit and the daily loss limit must be respected, regardless of whether your account is in profit. These limits are calculated based on both your account’s equity and balance, meaning that even if you’re in profit, exceeding the daily loss limit can result in a rule violation.

For example, if your account starts with $100,000 and your daily loss limit is 4%, you cannot lose more than $4,000 in a single day, regardless of how much profit you’ve previously made. If your account’s equity or balance at any point during the day drops below $96,000, it will be considered a breach of the daily loss limit rule, even if your account was in profit earlier.