On the Instant Standard account the drawdown is trailing.
If a trader takes does NOT request 100% of their generated profits, then the drawdown will continue to trail from their balance remaining after leaving a buffer.
If a trader requests 100% of their profits generated, this will cause the max drawdown to lock in at starting balance & result in a breach of the account after pay out. The trader will still receive their pay out but will lose the account.
Example 1:
Trader has $100,000 Account & generated 10% of profits (+$10,000). If they request $5000 then they will receive their pay out & their drawdown will trail at 6% of $105,000.
Example 2:
Trader has $100,000 Account & generates 10% of profits (+$10,000). If they request a full pay out of $10,000 then they will receive their pay out but their drawdown will lock at $100,000. This will result in the account hitting max drawdown and being breached.
How does withdrawing affect drawdown?
How does taking a pay out on Instant Standard affect drawdown.
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Written by Evercrest Funding
