Applicable Account Categories
• 1-Phase Funded Account
• 2-Phase Funded Account
Overall loss limit you must not exceed while trading
The Maximum Loss is the total loss limit you are allowed to reach on your account at any time while trading under Global4EX funded account rules.
It represents the maximum drawdown allowed on the account over its entire lifetime, not just within a single trading day.
The Maximum Loss is calculated based on the Initial Account Balance and applies continuously from the moment the account is activated.
If your Balance or Equity drops below the allowed threshold at any point, the rule is considered breached, even if the account later recovers.
🔹 How Is the Maximum Loss Calculated?
At any time, the total loss on the account must not exceed:
• 6% of the Initial Account Balance
(This rule applies to all Global4EX 1-Phase and 2-Phase Funded accounts.)
📐 Formula
Current Total Loss
= Initial Account Balance − Current Balance or Equity
This value must never exceed 6% of the Initial Account Balance.
📊 Examples
Example 1 – Global4EX Funded Account
• Initial Account Balance: $100,000
• Maximum Loss (6%): $6,000
If Balance or Equity drops below $94,000, the rule is breached.
Example 2 – Account After Profits
• Initial Account Balance: $100,000
• Highest Balance reached: $108,500
• Maximum Loss remains: $6,000
If Balance or Equity drops below $94,000, the rule is breached.
(Maximum Loss is always based on the Initial Balance, not on profits or peak equity.)
Example 3 – Gradual Drawdown
• Initial Account Balance: $100,000
• Current Balance: $95,400
• Total loss so far: $4,600
The account remains valid.
If Balance or Equity reaches $94,000, the Maximum Loss limit is hit and the account fails immediately and is terminated.
🔑 Key Points
• Applies to Global4EX 1-Phase and 2-Phase Funded accounts
• Maximum Loss is 6% of the Initial Account Balance
• The rule is static and does not increase with profits
• Both Balance and Equity are monitored
• Open trades and floating losses are included
• Breaching the limit results in immediate account failure and termination
📝 Explanation
The Maximum Loss rule is designed to protect overall account capital and limit total drawdown across the entire trading period.
By setting a fixed loss cap of 6% of the Initial Account Balance, Global4EX ensures that traders manage risk not only on a daily basis, but also over the long term.
Once the Maximum Loss limit is breached, the account is permanently failed and terminated, regardless of any later recovery.
Unlike the Maximum Daily Pause rule, this limit does not reset and remains in effect for the full duration of the funded account.