2-Step & 3-Step Accounts
The daily drawdown limit for 2 & 3-Step accounts is 4%. Exceeding this drawdown limit is a breach of trading conditions and will result in account closure.
Example - $100,000 2-Step account has a daily drawdown limit of $4,000. If the drawdown exceeds this at any point during the day the account will be closed.
1-Step Accounts
Funded Prime 1-Step accounts have a daily drawdown limit of 4%.
Example - $100,000 1-Step account has a daily drawdown limit of $4,000. Exceeding this limit results in account closure.
How is Daily Drawdown calculated?
The daily drawdown is based on the starting balance or equity at the start of each day, the server time resets at 00:00 UTC:
Example - A $100,000 2 step account closes the day at $105,000. This means the daily drawdown limit for the following day is 105,000*4%=$4200.
Example - A $2,000 profit is made on a $100,000 2 step account during the day. Another trade is opened on that day that falls to a $6,000 loss. This would not result in account closure as the net loss for the day is $4,000. However, if this trade remains open beyond midnight UTC then the account will be closed as the floating loss for that day will be $6,000.