--- title: How does the Daily Pause work on Stocks accounts? description: "On Stocks Challenge accounts, the Daily Pause represents the maximum amount you can lose in a single trading day before your account is temporarily paused.\n\nIf your equity (including open positions) reaches the Daily Pause threshold, all open trades will be automatically closed and your account will be paused for the remainder of the trading day.\n\nTrading will automatically resume on the next trading day.\n\nYour Daily Pause limit is visible on your Dashboard and is recalculated daily based on your previous day’s closing balance.\n\nExample (Based on the $50,000 Stocks Challenge)\n\nAccount Balance: $50,000\n\nDaily Pause: $1,000 (2%)\n\nIf your equity drops to $49,000 during the day, your positions will be closed and the account will be paused for the rest of the trading session.\n\nIf you finish the day at $49,200, then the next trading day your new Daily Pause level will be calculated from that closing balance:\n\n$49,200 – $1,000 = $48,200\n\nThis means if your equity drops below $48,200 the following day, the Daily Pause will be triggered again.\n\nPlease note:\n\nThe Daily Pause is based on equity (including floating PnL).\n\nOnce triggered, it cannot be reset during the same trading day.\n\nThe Daily Pause is separate from the Max Drawdown ($2,500 / 5%) rule.\n\nImportant Note:\n\nDO NOT use the Daily Pause (DP) as a substitute for a Stop Loss.\n\nThe Daily Pause is an automated safety feature, not a guaranteed \"hard stop.\" Because markets move rapidly, losses can exceed your daily limit in the milliseconds it takes for the system to trigger protection.\n\nRisk of Account Failure:\n\nSlippage: Relying on the DP in volatile markets often leads to slippage. If this slippage pushes your losses beyond your Max Trailing Drawdown, your account WILL be failed automatically.\n\nDrawdown Proximity: If your Max Trailing Drawdown is tighter (closer) than your Daily Pause limit, you will breach your drawdown and lose the account before the DP ever has a chance to trigger.\n\nDisclaimer: Trading Pit is not responsible for account failures or financial losses resulting from the use of the Daily Pause as a primary stop-loss strategy. 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[TheTradingPit Help Center](https://support.thetradingpit.com/?hsLang=en) 2. [Trading Rules](https://support.thetradingpit.com/trading-rules?hsLang=en) 3. [Stocks](https://support.thetradingpit.com/trading-rules?hsLang=en#stocks) # How does the Daily Pause work on Stocks accounts? On Stocks Challenge accounts, the **Daily Pause** represents the maximum amount you can lose in a single trading day before your account is temporarily paused. If your equity (including open positions) reaches the Daily Pause threshold, all open trades will be automatically closed and your account will be paused for the remainder of the trading day. Trading will automatically resume on the next trading day. Your Daily Pause limit is visible on your Dashboard and is recalculated daily based on your previous day’s closing balance. **Example (Based on the $50,000 Stocks Challenge)** - Account Balance: **$50,000** - Daily Pause: **$1,000 (2%)** If your equity drops to **$49,000** during the day, your positions will be closed and the account will be paused for the rest of the trading session. If you finish the day at **$49,200**, then the next trading day your new Daily Pause level will be calculated from that closing balance: **$49,200 – $1,000 = $48,200** This means if your equity drops below **$48,200** the following day, the Daily Pause will be triggered again. Please note: - The Daily Pause is based on **equity (including floating PnL)**. - Once triggered, it cannot be reset during the same trading day. - The Daily Pause is separate from the **Max Drawdown ($2,500 / 5%)** rule. **Important Note:** DO NOT use the Daily Pause (DP) as a substitute for a Stop Loss. The Daily Pause is an automated safety feature, not a guaranteed "hard stop." Because markets move rapidly, losses can exceed your daily limit in the milliseconds it takes for the system to trigger protection. **Risk of Account Failure:** - Slippage: Relying on the DP in volatile markets often leads to slippage. If this slippage pushes your losses beyond your Max Trailing Drawdown, your account WILL be failed automatically. - Drawdown Proximity: If your Max Trailing Drawdown is tighter (closer) than your Daily Pause limit, you will breach your drawdown and lose the account before the DP ever has a chance to trigger. **Disclaimer:** Trading Pit is not responsible for account failures or financial losses resulting from the use of the Daily Pause as a primary stop-loss strategy. 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