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Daily Loss Limit


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This sets a maximum loss level for a trader for any 1 day. When this thresh hold is reached, the trader must either liquidate all positions immediately, or else be prevented from entering into new positions.

Source: https://www.howwetrade.com/risk-management-in-trading/

See also: https://www.investopedia.com/articles/trading/03/111903.asp
https://www.tradingacademy.com/lessons/article/the-daily-loss-limit-a-key-to-long-term-survival/


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