Mechanics
Open / floating P&L counting
Also searched: open pnl · floating pnl · unrealized loss · equity based drawdown · mark to market
Whether a rule is measured on your balance (closed trades only) or your equity (closed plus the floating profit/loss of open positions). Equity-based rules can breach before you close.
Definition
'P&L' comes in two flavours. Realized (closed) P&L is money already banked or lost on trades you've exited. Floating (open, unrealized) P&L is the running profit or loss on positions you still hold.
The rule that matters is whether a firm evaluates a limit on BALANCE (closed only) or EQUITY (closed + floating). An equity-based max-loss or daily-loss line counts the paper loss on an open position — so a trade you never close can still breach the account.
Why it fails evaluations
Traders watch their closed P&L and feel safe while a losing position floats them straight through an equity-based line. The breach lands 'out of nowhere' because they were measuring the wrong number.
This is also the honest limit of any log-based tool, and TradersGuild says so plainly: a log of closed trades can't see your live floating P&L, so displayed room on an equity-evaluated rule is realized-only — an open loser will breach sooner than the number shows. Runs on the trades you log; if your firm's dashboard disagrees, trust the firm.
Which verified firms evaluate the daily line on equity
Counts open + closed (equity)
6 firmsFloating P&L on open positions counts — an open loser can breach before you close.
Not confirmed as equity-based (or no daily limit)
13 firmsThe daily line isn't verified as equity-based, or the firm has no separate daily limit.
This flag is only set where a firm's own docs confirm equity evaluation. Absence means unconfirmed, not proven-false — trust the firm's live dashboard for open-position math.
FAQ
Does open profit or loss count toward prop-firm rules?
It depends on whether the rule is evaluated on equity or balance. Equity-based rules count floating P&L on open positions; balance-based rules only count closed trades.
Can I breach a limit without closing a trade?
Yes — on an equity-evaluated max-loss or daily-loss line, the floating loss on an open position can cross the line before you ever exit.
Free tools for this
Know this line before your next trade.
TradersGuild encodes each firm's verified rules and recomputes your drawdown, daily-loss, consistency and minimum-day standing the moment you log a trade — so you know your room, not just the definition. Runs on the trades you log, not a feed from your firm. Broker auto-sync coming soon. Free for your first account.