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Daily Drawdown: What You Need to Know

Daily Drawdown: What You Need to Know

This article will help you understand how the Daily Drawdown is calculated

Updated over 3 weeks ago

The daily drawdown is set at 2.5% of your account balance. This helps manage risk and ensures responsible trading. Here’s how it looks for each account size:

  • $25,000 Account: $625

  • $50,000 Account: $1,250

  • $100,000 Account: $2,500

  • $150,000 Account: $3,750


What Happens If You Hit the Daily Drawdown?

  • Soft Breach: Trading is paused for the rest of the day.

  • Resume Trading: You can continue the next day, as long as your account hasn’t exceeded the Max Trailing Drawdown.


How Is It Calculated?

The drawdown is based on your account balance at the end of the trading day, ensuring consistency and transparency.

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