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DHAN · DAILY LOSS LIMIT · F&O PROTECTION

DHAN DAILY
LOSS LIMIT

Dhan does not have a built-in daily loss limit for F&O. TradeGuard adds one via the official Dhan API — monitors your account every 5 seconds, fires the kill switch the moment your daily loss hits your preset amount. Automatic. No willpower needed.

Dhan is one of India's fastest-growing brokers for F&O trading — low brokerage, clean interface, good options chain. But like every Indian broker, Dhan has no built-in mechanism that automatically stops your trading when total losses for the day cross a threshold you set. That gap is what TradeGuard fills.

TradeGuard integrates with your Dhan account using the official Dhan API. It monitors your real-time P&L every 5 seconds via WebSocket and polling. The moment your daily loss crosses the limit you set — say ₹7,500 — TradeGuard fires the kill switch: squares off all open F&O positions and prevents new orders for the rest of the day.

HOW TO SET A DAILY
LOSS LIMIT ON DHAN

1

Register on TradeGuard and select Dhan

4-day free trial, no credit card. Takes 2 minutes. Select Dhan as your broker during registration.

2

Connect your Dhan account

Go to Broker Login in TradeGuard → enter your Dhan Client ID and today's Access Token (from Dhan app → Profile → Developer API). TradeGuard verifies in seconds.

3

Enable Daily Loss Limit rule

In the Kill Switch Rules section, toggle on Daily Loss Limit and enter your amount — e.g. ₹5,000. Add other rules if needed (max trades, time stop).

4

Start monitoring before market open

Click Start Monitoring each morning. The dashboard shows your live P&L and rule status. When your limit is hit, the kill switch fires automatically — no action required.

HOW TO CALCULATE
YOUR DHAN LOSS LIMIT

The 1-2% capital rule

The most widely used framework: set daily loss limit at 1–2% of your trading capital. With ₹5 lakh deployed in F&O, that is ₹5,000–₹10,000. This ensures no single bad day can wipe more than 2% of your capital — giving you 50 bad days before your capital runs out (never happens in practice).

The brokerage-adjusted rule

Set your daily loss limit at the amount where your monthly P&L would still be positive even if you hit the limit 3 times in a month. If you need ₹15,000 per month to be net positive, your daily limit should be ₹5,000 — three bad days at ₹5,000 still leaves you at break-even before good days.

The emotional threshold rule

What is the loss amount that causes you to make irrational decisions — revenge trade, double position size, ignore setup quality? Set your limit just below that number. For most F&O traders with ₹5–10 lakh capital, this is ₹5,000–₹15,000.

DHAN DAILY LOSS LIMIT
SET IN 5 MINUTES.

Free 4-day trial. No credit card. Connect your Dhan account and set your limit now.

FAQ

Dhan does not have a built-in account-level daily loss limit that halts all trading. TradeGuard adds this via the official Dhan API — monitoring your account every 5 seconds and firing a kill switch when your daily loss reaches your preset amount.
A common rule is 1–2% of your trading capital per day. For ₹5 lakh capital that is ₹5,000–₹10,000. Never set it higher than the amount that would cause you to make emotional decisions if you lost it all at once.
TradeGuard's bypass monitor runs every 30 seconds. If new positions are opened in your Dhan account after the kill switch fires, TradeGuard detects them and squares them off again. This loop continues until 3:30 PM IST.