Your account's total floating loss cannot reach 2% of its current balance. Floating loss is the amount by which your current equity is below your current balance, measured across the account. Reaching the limit results in a hard breach.
Example: Your current balance is $110,000 and your maximum floating loss limit is 2%, or $2,200. Your account breaches if equity reaches $107,800. Suppose your equity is $108,400, representing a $1,600 floating loss. You close part of your position and realize a $600 loss. Ignoring additional charges or market movement, your balance becomes $109,400, your equity remains $108,400, and your remaining floating loss is $1,000. The limit immediately recalculates to 2% of $109,400, or $2,188. Your new floating loss breach threshold is $107,212.
The realized loss still affects your account balance and other drawdown rules.