The daily loss limit (DLL) is a risk management rule that defines the maximum amount you are permitted to lose in a single trading day.
At Frontline, hitting the DLL is considered a hard breach. If your net losses hit this threshold—including both realized losses and any losses on open positions, all open positions will be autoliquidated and the account will be shut down. The evaluation or funded account will be lost and you will have to purchase a new one if you wish to continue with Frontline.
How is the DLL calculated?
The DLL is dynamic and is calculated on your account balance at 5:00 PM ET every day. You can track this daily limit in your Frontline dashboard.
For example if your DLL is 3%, and you have a $50k account:
Day 1: Account balance $50,000 3% = $1500. So your account balance cannot go below $48,500 that day
Day 2: Account balance $53,200 3% = $1,596. So your account balance cannot go below $51604 that day