Your account's total floating loss cannot reach 1% 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 1%, or $1,100. Your account breaches if equity reaches $108,900. Suppose your equity is $109,200, representing an $800 floating loss. You close part of your position and realize a $300 loss. Ignoring additional charges or market movement, your balance becomes $109,700, your equity remains $109,200, and your remaining floating loss is $500. The limit immediately recalculates to 1% of $109,700, or $1,097. Your new floating loss breach threshold is $108,603.
The realized loss still affects your account balance and other drawdown rules.