> For the complete documentation index, see [llms.txt](https://help.topstepx.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.topstepx.com/settings/risk-settings/personal-daily-loss-limit.md).

# Personal Daily Loss Limit

## Overview

A Personal Daily Loss Limit acts as a risk management tool for traders, defining the maximum allowable financial loss within a single trading day. This predetermined threshold serves to protect the trader's capital from significant downturns in market conditions, ensuring effective risk management and maintaining trading discipline.

## How to Enable a Personal Daily Loss Limit

Apply a personal daily loss limit (PDLL) on net profit and loss calculated in real-time.  To enable the PDLL, you must enter a *Personal Daily Loss Limit (PDLL)* value and then select a *PDLL Action*:

1. If **Do Nothing** is selected, then the PDLL functionality is disabled.
2. &#x20;If **Liquidate** is selected, then upon reaching the PDLL, all positions in the account will be liquidated. The action will then be reset to **Do Nothing**.
3. &#x20;If **Liquidate and Block** is selected, then upon reaching the PDLL, all positions in the account will be liquidated, and the account will be blocked from trading until the next trading day.

When the PDLL is correctly enabled, the DLL gauge in your header will be replaced by a PDLL gauge. This gauge will move in relation to your net profit and loss to help you track your daily performance in relation to your personalized daily loss limit.&#x20;

<figure><img src="/files/9IhPXE0a4S7eBANTQK34" alt=""><figcaption><p>Personal Daily Loss Limit</p></figcaption></figure>

{% hint style="warning" %}
**Note:** When an account is *liquidated and blocked*, it cannot be reversed. The account will be blocked from trading until the next trading day. This feature is intended to provide a break from the markets and promote disciplined trading.&#x20;
{% endhint %}


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