The Buffer is the foundational safety zone in a Master Account, it acts as a performance threshold that must be cleared before withdrawals can begin.
Purpose of the Buffer
Protects Trading Capital: Ensures the account maintains sufficient equity after payouts.
Encourages Responsible Growth: Prevents premature withdrawals that could
jeopardize long-term profitability.
Measures Sustainability: Demonstrates that the trader can sustain gains beyond
their starting cushion.
Example of How the Buffer Work
Account Size | Starting Balance | Buffer | Profit Target for Payout Eligibility |
25K | $25,000 | $1,000 | $26,500 (i.e., $500 above buffer) |
50K | $50,000 | $1,500 | $52,000 (i.e., $500 above buffer) |
100K | $100,000 | $3,000 | $103,500 (i.e., $500 above buffer) |
150K | $150,000 | $3,500 | $154,000 (i.e., $500 above buffer) |
Note: In the above example since the trader has $500 above the buffer, if they are eligible for a payout they will be able to request $500 from their account.
In essence:
The buffer is not a fee or deduction, it’s the amount of profit the trader must build before becoming eligible to take profits out of the account.
Once the trader’s equity surpasses the buffer and meets the other payout criteria
(consistency + winning days), payouts can begin up to the allowed cap.