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How Does the Maximum Daily Drawdown Limit for the Instant Funding Account Work?
How Does the Maximum Daily Drawdown Limit for the Instant Funding Account Work?
Rocco H. avatar
Written by Rocco H.
Updated over a month ago

The Instant Funding Account has a fixed Daily Drawdown Limit of 3%, based on the initial balance.

Example 1:

Account Size: $100,000
Daily Drawdown Limit: $3,000

Day 1:

Starting Balance/Equity: $100,000
Daily Drawdown: $3,000
Stop-Out Limit: $97,000 ($100,000 โ€“ $3,000)

Day 2:

Starting Balance/Equity: $106,000
Daily Drawdown: $3,000
Stop-Out Limit: $103,000

Example 2:

End of Day 1 Balance: $105,000
End of Day 1 Equity: $103,000
Daily Drawdown Limit: $3,000
Stop-Out Limit: $102,000 (a further $1,000 loss in Equity would breach the Limit)

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