Funded Trader Markets FAQs

How Does the Maximum Daily Drawdown Limit for the 2-Step Standard Evaluation Work?

The 2-Step Standard Evaluation has a fixed Daily Drawdown Limit of 4%, based on the initial balance, and does not adjust with changes in Balance or Equity.

Example 1:

Account Size: $100,000
Daily Drawdown Limit: $4,000

Day 1:

Starting Balance/Equity: $100,000
Daily Drawdown: $4,000
Stop-Out Limit: $96,000 ($100,000 – $4,000)

Day 2:

Starting Balance/Equity: $104,000
Daily Drawdown: $4,000
Stop-Out Limit: $100,000 ($104,000 – $100,000)

Example 2:

End of Day 1 Balance: $104,000
End of Day 1 Equity: $102,000
Daily Drawdown Limit: $4,000
Stop-Out Limit: $100,000 (a further $2,000 loss by Equity would breach the limit)

Related Questions

What Is The Maximum Allocation For Instant Funding Accounts
Is There A Minimum Trading Day Requirement For Instant Funding Accounts?
What is the Available Leverage for the Instant Funding Accounts?
Is There A Minimum Trade Hold Time On Instant Funding Account?
What is the Profit-Split offered in Instant Funding Account?
Can I Request To Switch Trading Platforms For The Instant Funding Accounts?

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