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What does static drawdown mean on Instant Funding?

A plain-English explanation of the static drawdown model with a worked example.

Written by Team FD

Instant Funding uses a static drawdown model. Your drawdown floor is fixed from your original starting balance and never moves, even as your account grows.

Example on a $10,000 Instant Funding account:

  • Starting balance: $10,000

  • Maximum drawdown floor: $9,200 (8% below $10,000)

  • Daily drawdown limit: $400 per day (4% of $10,000)

  • If your account grows to $12,000 through profits, your drawdown floor remains at $9,200

Breaching either the maximum or daily drawdown is a hard breach and may result in account closure. Always monitor both limits throughout the trading day.

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