The maximum daily loss is the amount you are allowed to lose in a single day. For this rule, the higher of two values is used: equity or balance. The limit is set at 5% (for the 2-stage challenge) and 4% (for the 1-stage challenge) of the starting capital or the balance for each day. The rule states that your daily capital, meaning the result of your current floating PnL (profit and loss) together with all positions closed that day, must not reach the maximum daily loss limit.
The maximum daily loss resets at 00:00 (UTC+0) every day.
For Instant accounts, the daily loss limit is 3%. The daily limit includes the result of closed trades and floating PnL and resets at 00:00 UTC+0.