The daily loss reset is the point in time at which a program’s daily loss limit resets to zero — clearing the accumulated losses from the previous session and starting a fresh measurement window. When and how the reset occurs is a rule detail that directly determines which trades fall inside which measurement window.

Most programs reset the daily loss limit at midnight server time (usually UTC or the broker’s configured timezone). A trade opened at 23:50 and closed at 00:10 spans two daily windows — its loss may be split between them or attributed entirely to the closing day, depending on the program’s measurement basis. This must be confirmed in the rules, not assumed.

Measurement basis: balance versus equity

The daily loss reset interacts directly with the measurement basis of the limit itself. Under a balance-based daily limit, only closed trades count — open floating losses do not accumulate against the limit until they close. Under an equity-based limit, floating losses register immediately, and the reset at midnight clears the equity calculation regardless of whether positions are open.

This creates an asymmetry: a trader holding a position through a reset under a balance-based model carries yesterday’s unrealised loss into today without it counting against yesterday’s limit. Under an equity-based model, that same unrealised loss was already counted.

Practical implications for trade timing

• Avoid opening positions near the reset time without understanding exactly which window they fall into.
• Under equity-based limits, a position that is losing heavily near reset time still counts against the current day’s limit — closing it before reset does not move that loss to the next day.
• Some programs define the reset by calendar date in the trader’s local timezone; others by server timezone. The difference can be several hours. Confirm which applies.

Why the reset time matters at the evaluation level

Approaching the daily limit late in a session creates a compounding risk: if the limit is nearly consumed and a position is still open, a further adverse move before reset may breach the limit and end the evaluation — with no reset imminent to provide relief. Position sizing and trade management should factor in proximity to the reset, not just the abstract limit amount.

For the underlying mechanics, see daily loss limit, equity vs balance, and breach. FundedProp’s daily loss reset time and measurement basis publish in the rulebook before any evaluation opens for purchase.

FundedProp provides simulated trading evaluations. All accounts are demo accounts; no real capital is traded by participants. This is not investment advice.