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

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Written by Support
Updated this week

The Overall Drawdown Limit for the Instant Funding Standard Account is 5%.

Key Points to Understand:

Trailing Overall Drawdown: The Overall Drawdown is calculated based on your account’s Highest Balance (Maximum Balance Watermark) and does not reset daily at 5 PM EST. It consistently remains at 5% of the
peak balance.

Example 1:

Start of Day 1:

Starting Balance/Equity: $100,000


Initial Overall Drawdown: 5% of $100,000, which means the stop-out limit is set at $95,000. If Either Equity or Balance reaches this limit, it would result in a breach of the Overall Drawdown Limit.

During Day 1:

New Balance: $103,000


Overall Drawdown: $103,000- $5,000 = $98,000. If Either Equity or Balance reaches this limit, it would result in a breach of the Overall Drawdown Limit.

Day 2:

Starting Balance/Equity: $101,000
Allowed Overall Drawdown: The stop-out limit remains at $98,000 as it is based on the highest balance of $103,000. If Either Equity or Balance reaches this limit, it would result in a breach of the Overall Drawdown Limit.

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