The Maximum Loss Limit is the amount your equity or balance can't go below. This rule is set to % of each model of the initial account size. For example, if you have a $100.000 account of 2-Step model and the Maximum Loss Limit is 10%, your equity or balance can't go below $90.000 at any moment.

Example

You have chosen to go for a $100.000 account. The Maximum Loss Limit is 10% of the initial balance, which is $100.000 for this example, 2 Step Model example:

Maximum Loss = $100.000 * 10% = $10.000 Maximum Loss Limit.

This means your equity/balance can't go lower than $100.000 - $10.000 Maximum Loss Limit= $90.000

If your equity/balance goes below $$90.000 at any specific moment in time, your account will be closed.