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How Does the Maximum Daily Drawdown Limit for the Instant Funding Standard Account Work?

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Written by Support
Updated this week

The Instant Funding Standard 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 – $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

At 5 PM EST, if unrealised positions are open, then 3% of Initial balance will be deducted from the higher of the two. In Example 2 above since balance is higher than Equity, the stop out limit will become ($105,000 – (3% of 100,000)) = $105,000 – $3,000 = $102,000
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If Either Balance Or Equity reaches the limit of $102,000, it would breach the Daily Drawdown Limit (In example 2 above, a further $1,000 loss in Equity would breach the Limit)

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