Drawdown Rules and Limits
Explanation of drawdown limits
Drawdown limits help prevent significant losses and maintain account stability.
Drawdown Type | Description |
Daily Loss Limit | Max daily allowable loss. Violation results in a soft breach, meaning the trader will be locked out of the account until the start of the next trading day. |
Max EOD Trailing Drawdown | Trailing limit based on profits. Violation results in a hard breach, permanently disabling the account. |
Traders must adhere to both types to avoid account breaches.
Soft Breach (Daily Loss Limit):
If you violate the daily loss limit, you will be temporarily locked out of your account. Access will be restored at the start of the next trading day.Hard Breach (Max Trailing Drawdown):
If you breach the maximum trailing drawdown, your account will be permanently disabled and cannot be reactivated.
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