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

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Written by Support
Updated yesterday

The Overall Drawdown Limit for the Instant Funding Plus Account is 6% from the Highest Recorded Balance.

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 trails at 6% of the INITIAL BALANCE from the Highest Recorded Balance.

  • Fixed Drawdown After Profit: Once the account achieves a 6% profit, the Overall Drawdown Limit is fixed based on the Initial Account size, and the highest recorded balance no longer affects the limit.

Example 1:
Start of Day 1:

Starting Balance/Equity: $100,000
Initial Overall Drawdown: 6% of $100,000, which means the stop-out limit is set at $94,000. 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 – (6% of $100,000 = $6,000), so the new stop-out limit is $97,000. 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 $97,000 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.

Example 2: After Achieving 6% Profit
Day 3:

Starting Balance/Equity: $106,000
Overall Drawdown: Fixed at $100,000 after achieving 6% profit (Overall Drawdown Limit becomes $100,000). If Either Equity or Balance reaches this limit, it would result in a breach of the Overall Drawdown Limit.

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